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.