September 21, 2023, 4:03 pm | Read time: 4 minutes
Sky Deutschland is currently facing challenges. Channels are being shut down, and there are recurring rumors about a sale. We take this as an opportunity to discuss the future of the company in Germany.
Sky Deutschland is part of the European Sky Group and is based near Munich. The company’s offerings include several pillars in the entertainment sector. However, Sky is primarily known for its soccer broadcasts and HBO content. This foundation has been shaky for some time. The TECHBOOK editorial team is therefore discussing the future of Sky Deutschland.
Overview
Sky Shuts Down Individual Channels
It’s not unusual for Sky to make changes to its channel offerings. New options are added, while old ones are removed. However, in recent months, a notable number of channels have been discontinued.
At the end of 2022, children’s channels “Junior” and “E! Entertainment” were particularly affected. In early 2023, it was “NatGeo” and “NatGeo Wild,” in the summer “Spiegel Geschichte” and “Curiosity TV”—and now “Sky Comedy.” According to Sky, viewer interest was lacking. In all cases, Sky also points to an existing offering, such as documentary or history content. Nevertheless, the frequency of these cases seems noteworthy at the moment.
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Streaming Issues with HBO Content
Another point that has been puzzling for some time is Sky’s streaming offering. Since June 2022, it no longer operates under Sky Ticket. Instead, movies, series, and sports can be found on the streaming service Wow.
A major draw is the HBO content, especially award-winning series like “Game of Thrones,” the spin-off “House of the Dragon,” “Euphoria,” and “Succession.” In the U.S., these are available through HBO’s own streaming portal Max (formerly HBO Max and Discovery+). As of now, there are no plans for the service to launch in Germany, but such plans have not been ruled out by the company.
The deal with Sky runs until 2025. Whether Max will come to Germany by then is unknown but considered likely. These rumors are currently fueled by the planned “Harry Potter” series, which is expected to be released in 2025. There is hardly a more prominent draw for launching in new countries.
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Strong Competition in Sports
For a long time, sports—especially soccer—were Sky’s flagship. The Champions League could almost exclusively be watched on this pay-TV provider in Germany. However, the situation has clearly shifted. To watch comprehensive soccer, one needs at least Sky/Wow and DAZN, and ideally RTL+, Amazon Prime (Video), and Magenta Sport.
The reason is the increasingly expensive rights, which are also split and awarded by the respective leagues and associations. It’s often said that competition is good for business and ultimately benefits the customer through lower prices. In soccer, the opposite is observed. Both DAZN and Sky have had to raise their prices recently.
While this promises to cushion the increased costs in the short term, it could lead to customers leaving in the long term—even at Sky.
Sale of Sky Deutschland
After rumors of a sale of Sky emerged at the end of 2022, there have been ongoing reports of potential buyers. Currently, the pay-TV provider is still owned by the French company Comcast. There was speculation that 1&1 or ProSiebenSat.1 might buy the German business. So far, these plans have not materialized.
Another scenario involves breaking up the company. As mentioned, Sky Deutschland’s operations are diverse. Therefore, it’s not unlikely that Sky will be sold in parts. ProSiebenSat.1 is rumored to be particularly interested in the company’s streaming content. Other potential buyers might be interested in the infrastructure or pay-TV offerings. Few seem able—or willing—to buy the company as a whole. Either way, the situation around Sky Deutschland remains intriguing.
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