NZ consumers are beneficiaries of Sky/Vodafone decision

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


MARKET RELEASE
23 February 2017

Spark New Zealand says New Zealand consumers are
beneficiaries of decision to turn down Sky/Vodafone
merger

Spark New Zealand said today the Commerce Commission’s decision to decline
the proposed merger between Sky Network Television Ltd (“Sky”) and Vodafone
New Zealand (“Vodafone”) is a big positive for kiwi consumers.
“We’re generally supportive of market consolidation where it leads to better
outcomes for consumers,” said Spark’s General Manager Regulatory Affairs,
John Wesley-Smith, “however, the lack of modern on-demand options for how
New Zealand sports fans can access ‘must-watch’ premium sports content today,
which would have been exacerbated by the merger, meant the merger was not in
the best interests of consumers and so we believe the decision to decline was
the right one.
“In today’s digital age, consumers want to be able to watch their favourite sports
wherever and whenever they want. Viewers have been voting with their wallets
away from out-dated content bundle models that force them to pay for unwanted
content, set-top boxes or service providers. The lack of a meaningful wholesale
market today for Sky’s sports content means we and other mobile and
broadband providers have been held back from offering our customers new ways
to watch sports content in ways that are already the norm elsewhere in the world.
That wholesale market would not have developed at all had the merger gone
ahead, but will and must develop now.
“While Sky will no doubt be disappointed with the outcome, we believe there is
still a line of sight to a promising and sustainable commercial future for Sky.
Spark, alongside several other broadband and mobile providers, would welcome
the opportunity to bundle modern, on-demand versions of Sky's core sporting
content with their broadband and mobile packages, if Sky is willing to create a
vibrant wholesale market for its content.”

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


Wesley-Smith said the need for the market to be able to deliver better choice for
sports fans will only grow. “This decision recognises that the sports content
market in New Zealand needs to catch up with consumer reality, as it has in
many other markets around the world. Increasingly, consumers are demanding
greater choice and flexibility as to how they access premium content. Today’s
decision is a welcome step in the right direction.”

- ENDS –


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