8 Dec 2011

Igloo losses expected

7:06 am on 8 December 2011

Sky Television Network is forecasting losses at a new pay tv service over the next couple of years.

Sky will own 51% of Igloo, which it has set up with Television New Zealand. Igloo will provide a mix of free-to-air and pay content, at a price of $25 per month to help boost flagging subscriber growth.

The company expects to attract 7000 users in the June financial year, 50,000 the year after and to lose $1.6 million in both years.

Sky will invest $12.75 million as its share of the cost of setting it up, with TVNZ investing $12.25 million.

The Igloo box will cost about $200.