In an effort to bind customers to their contracts for longer periods of time, Sky Deutschland AG, a German pay-television operator owned by News Corp., plans to offer expanded programming through Microsoft's Xbox Live service.
To utilise this service, customers will have to pay 12 euro for the “Sky Go” monthly add-on subscription and an annual contract fee of 59.99 euro for Microsoft’s Xbox Live Gold platform.
To compete with expanding programming service providers such as Kabel Deutschland Holding AG, Deutsche Telekom AG and Vodafone Group Plc - all of which are providing expanded TV offers to stop customers from cancelling their packages - this German company is putting every effort to build their customer base.
Churn rates which measures the pace of contract cancellations dropped by almost half in the first six months to 9.7 percent on an annualised basis.
CEO Brian Sullivan in a phone conversation said, “If we can acquire some additional new customers to the platform because the experience is fun and cool, that’s great, but it’s not the primary reason,” as reported by Business Week.