Sky TV increases prices for entertainment subscribers, broadband

Breaking Bad and its spinoff Better Call Saul feature on Sky's Boxed Sets channel - part of the Sky Entertainment package.

Sky TV is increasing the price of Sky Entertainment by 10 per cent from $25.50 to $28 per month from October 1.

At the same time, the SoHo channel, which otherwise costs $9.99 a month, is being bundled into Entertainment.

The price of Sky Movies is also being “rounded down” from $20.93 per month to $20.

“We haven’t made changes to our Sky Entertainment prices since 2019, and the cost for rights to premium entertainment shows has increased globally in that period,” Sky chief corporate affairs officer Chris Major said.

The increase is the latest in a series of price rises from Sky and its streaming rivals, such as Disney+ with its three price bumps in quick succession.

On March 1, Sky increased the price of Sky Sport by $3 per month and the price of its Sky Sport Now streaming app by $5 a month.

And in June, as rival Spark Sport entered its final month, Sky announced that a Sky Sport Now Annual Pass would increase 12.5 per cent from $399.99 to $449.99. At the time, Sky said Spark Sport’s demise was coincidental. “The cost to acquire sports rights and produce quality content continues to increase,” a spokeswoman said.

Broadband prices rise

Sky is also increasing the price of its Sky Broadband service which, behind the scenes, is provisioned by 2degrees.

Sky Broadband prices will increase $5 per month from October 1.

Current Sky Broadband pricing for its three unlimited fibre plans - all of which include 25 per cent off Sky TV for six months - is $85.99, $100.99 or $110.99 per month depending on speed.

The price increase is pinned on inflation. Specifically, increasing wholesale prices charged by UFB network operators (primarily Chorus), who are allowed one regulated increase per year, tied to the Consumer Price Index.

There has been a wave of broadband price rises over the past two months as retail internet service providers pass on Chorus’ wholesale price increase.

Sky shares were flat at $2.49 in midday trading. The stock is up 0.2 per cent for the year.

Full-year numbers will be reported on August 24.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.