Sky is "scrapping its numbered sports channels and replacing them with themed offerings focused on specific sports -- led by football, golf and cricket -- as it combats falling viewer numbers with a branding revamp and a cheaper viewing package," according to Mark Sweney of the London GUARDIAN. The "retirement of Sky Sports 1,2,3,4 and 5 and the introduction of a new package two-thirds cheaper than current prices represents a major shakeup of the strategy" that made Sky a "pay-TV powerhouse." The new offering will result in the launch of themed channels, like Sky's existing dedicated Formula 1 channel, for its "top-flight sports" including football -- which will get two channels -- golf and cricket. A new channel, Sky Sports Arena, will host "other content including rugby and tennis." A key part of the strategy is that it will let Sky "entice new pay-TV subscribers reluctant to fork out" up to £49.50 ($63.97) for its cheapest sports package. Sky will charge £18 ($23.26) for its cheapest package -- although the whole Sky Sports bundle will "remain a costly option." The cost of sports rights has "spiralled in recent years" while viewing has "dropped significantly." Some analysts "ascribe this drop to the rise in popularity of cheaper streaming services," such as Netflix and Amazon. Ampere Analysis Dir Richard Broughton said, "There are a range of reasons why Sky would be looking at such a big structural change to its pay-TV service. In part, it could be a response to the ongoing question of viewing numbers to traditional pay-TV sport. There is also a demographic shift where people, especially younger groups, are reluctant to spend so much" (GUARDIAN, 6/27).
