Boston, MA 04/16/2014 (wallstreetpr) –Telecom Italia, one of the major Italian telecommunications company has tied up with Sky Italia to provide TV content to its broadband clients. Sky Italia is a digital satellite television owned by Twenty-First Century Fox Inc (NASDAQ:FOXA). The deal will enable Telecom Italia to provide new and improved services to its subscribers who have fibre based internet connections. The services are expected to be made available as early as 2015.
Deal to improve Telecom Italia services
The biggest benefit for Telecom Italia comes from the fact that it does need to bear any addition costs to provide Sky Italia’s content to its customers. Sky Italia’s content will help add entertainment services to its current bouquet of services. The customers of Telecom Italia would also have access to all of Sky Italia’s content including motorsports and Champions League matches.
The deal holds special significance for Telecom Italia since it will now be able to provide entertainment services to users who access digital content through their smartphones. The Italian telecommunication major is expected to gain a strategic edge as there are no major cable carriers operating in Italy. This will also enable the company in improving its profitability that has been under pressure due to falling prices.
Sky Italia to have a wider audience
The deal will allow Sky Italia to add new subscribers to its network. The deal provides a competitive edge to Sky Italia in an industry where new partnerships are an important medium to reach new customers. The deal would enable Sky Italia to add subscribers over the internet, allowing it to expand its market base for payTv in Italy. This will be especially beneficial to those customers who could not install a satellite dish. The number of subscriptions for Sky Italia stood at 4.76 million with 15 Million individual viewers at the end of 4Q2013.
The subscriber would be simply required to connect their systems through MySkyHD decoders designed for internet TV. Currently, Sky Italia monthly TV package costs 24 Euros ($33.20). Additionally, the service would also be available through broadband packages.
