At the end of July, the media group Comcast published its business figures for the second quarter of 2020. It looked particularly bad for the subsidiary Sky, which had to put up with a sales decline of 15.5 percent compared to the same quarter of the previous year, as the media magazine ” DWDL.de “reported.
And subscription cancellations at Germany’s largest pay TV provider are also increasing. In the first half of 2020, 32 percent more cancellations were sent via the subscription alarm subscription service than in the previous year. A survey by Aboalarm, which is available exclusively to NewsABC.net, provides information on the reason why users are canceling the Sky service.
Almost 80 percent of the layoffs are strategic
The results show: Almost 80 percent of the layoffs in the pay TV sector are strategic. “More and more pay TV customers are canceling their contracts without actually wanting to change providers,” said Aboalarm managing director Thilo Knaupp.
The reason for this are special discounts that only apply to new Sky customers. Subscriptions that have been running for a long time often have more expensive conditions. 87 percent of the 2,200 respondents, including current and former Sky customers, find this unequal treatment unjust. 59 of the Sky members surveyed, who have not yet sent a notice of termination, intend to terminate (again) soon, according to the survey evaluation.
New subscription model is intended to counteract cancellations
However, Sky changed its subscription model as early as July 2020 and introduced a monthly cancellation option after the minimum contract period had expired, for which users, however, had to pay a slight surcharge. If you enter into a longer contract, you can keep the lower prices. In this respect, existing customers now enjoy an advantage.
Another result of the survey concerns the use of other streaming services. Accordingly, the number of pay TV customers is growing who, in addition to their Sky subscription, also use services such as Amazon Prime, Netflix or Disney Plus.