Sky TV forced to move to new satellite option sooner after supply issue

Sky TV says it's facing an accelerated migration to an alternative satellite option next year.

Pay TV provider Sky Television says it’s facing an accelerated migration to an alternative satellite option next year following delays to an agreed satellite supply with Australian telco Optus.

In an update to the market this afternoon, Sky said this would result in a “rephasing of costs from FY26 into FY25″.

Sky is due to transition from its current D-Series satellite (Optus D2), which reaches end-of-life in 2025, to the new software-enabled satellite (Optus 11) at a future date.

But Sky said it was notified by Optus that the Optus 11 satellite that was expected to be ready for service in late 2025 has experienced further manufacturing delays.

Optus will also bring the end of the commercial operation of the Optus D2 satellite forward to May 2025.

“Optus has offered Sky two satellite path options to replace Optus D2 and Sky will now accelerate its migration plans to meet this new deadline,” Sky said in a statement to the NZX.

“Sky has previously undertaken successful satellite migrations, and while significant reprioritised effort will be required in FY25, Sky is confident it can achieve migration to an alternative satellite by May 2025.

“There remains an inherent technology and logistical risk to the successful migration to an alternative satellite, with on-the-ground technology updates also required.”

Sky said it will seek to ensure a smooth transition for customers, including by undertaking significant testing and customer communications ahead of any migration steps.

“Sky’s focus throughout the satellite migration planning has been to ensure the most effective transition strategy that will deliver the best customer experience.”

Sky said it would also continue to accelerate its rollout of the new, internet-connected Sky Box and the IP-only Sky Pod.

This, alongside access to companion app Sky Go for all Sky Box customers, will serve to derisk any potential disruption, it said.

Sky has an agreement in place with Optus that provides Sky with security of supply over satellite services to 2031.

Sky will report its FY24 result on Wednesday.