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UK number-crunchers at Enders Analysis say that Sky Deutschland’s 400,000-450,000 net subscriber additions targeted by the pay-TV business this year “is realistic”. Indeed, Enders adds: “The €70-90 million EBITDA [official] guidance may be conservative”.
“Without any direct competitor, Sky is rightly enhancing its all-in-one premium appeal. This supports ARPU growth and increases its distinctiveness compared to other providers, including the expected Netflix launch in Germany,” states Enders.
Over the past year Sky Deutschland has dumped its expensive tele-sales operation and is instead focusing on “quality” subscribers. It has cancelled one year contracts and instead stipulated two-year minimum contract lengths which, says Enders, could “lead to a reduction in churn”.