It would seem that consumer trends are similar to what I've experienced in Aus - many households have multiple subscriptions, especially to those with key sporting events (EPL is a great example, Rugby would be another in NZ)
Given the size of the market, I imagine NZ will end up with 2 or 3 major streaming services. I can't see the market being big enough for more than that. Since Sky currently have the rights to high demand content, I'm quite certain they will be one of the few. Beyond this, I have no specific insights.
The real deal here is if the streaming service continues to grow whilst satelite slowly fades away. I've not modelled anything in particular, but would surely demand a FCF higher than 7-8 times...
At this point, the biggest risk I see is some ridiculous cash splash.
SKT Price at posting:
$2.30 Sentiment: None Disclosure: Not Held
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