Optus and Sky agree on new 10-year deal for satellite capacity

Optus and New Zealand pay TV provider Sky Television have agreed a further 10-year agreement for satellite capacity. Under the deal, Optus will provide Sky with satellite capacity to 2031, with the current contract expiring in 2021.

Sky said in a securities announcement that its investment under the contract is in excess of NZ$200 million. The contract is also conditional on Optus procuring leet enhancements, including the successful launch of a new satellite at 160E to replace the existing D1 satellite.

Sky is currently planning a hybrid service that uses satellite and internet deliver over its next generation Sky boxes, which are expected to be delivered later in 2019. Sky said that the hybrid delivery of content via satellite and internet was a key competitive advantage, particularly for sport.

The new deal builds on a strong history between the two companies. Sky irst went digital in 1997 when it acquired capacity on the Optus B1 satellite. Optus launched the D1 satellite in 2006, and in 2007 expanded its bandwidth to allow Sky to deliver HD content to its customers.

Sky also noted that the renewal allows it to continue delivering on its roadmap for 4K and HDR content across New Zealand. Geoff Long, Commsday

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