Sky rivals Netflix with one TV subscription to rule them all
Brits now spend more time with streaming services than with traditional broadcast TV.
In the US, streaming has already surpassed linear viewing; in the UK, the likes of Netflix and Amazon Prime are absorbing a growing share of screen time and, in turn, consumer spend.
Revenue from digital entertainment rose to an all-time high of £13.3bn last year.
Viewing trends are shifting among young users, especially with over half of British Gen Zs ditching regular broadcast TV for online streaming platforms. Last week, Sky decided to bundle Netflix, Disney+, HBO Max, and Hayu into a single monthly subscription.
The British broadcasting giant has long depended on being the gatekeeper to premium content, HBO dramas, Hollywood films, and big US exports. But studios have now gone direct, and Disney has reclaimed its catalogue for Disney+. Warner has run with HBO Max. And Netflix, for its part, has confidently crowned itself as the host of home TV.
Market fragmentation has frustrated viewers as they juggle among apps, various subscription packages, and periodic price increases.
In a plea to stay relevant, Sky’s response is to create one interface, one search function and one place to stream under its so-called ‘ultimate’ TC package.
Under the deal, customers will receive ad-supported tiers of Netflix, Disney+, HBO Max and Hayu, all of which, taken individually, would cost roughly the same per month before a single traditional TV channel is added. Sky has announced it will fold in over 100 of its own channels and originals.
However, the £24 headline price is tied to a 24-month contract, meaning the flexibility associated with streaming won’t survive the rebundling.
Subscription fatigue
The British streaming market has matured rapidly, with most households opting for ad-supported subscriptions to offset monthly bills.
Meanwhile, the platforms themselves are pushing cheaper, ad-backed plans to protect margins.
Disney’s recent results showed streaming revenues up 11 per cent year on year to $6.7bn, with operating income majorly improving.
Netflix, too, has leaned heavily into its ad tier internationally, while Warner Bros Discovery is launching HBO Max in the UK with a similar structure from day one.
For viewers, this has coincided with an incremental increase in stacked subscriptions. Industry estimates have suggested many UK households now carry three or more services at once.
The shift towards ads has softened that blow, but has not eliminated the burden entirely, with the combination of major platforms costing around £60 per month per user.
Sky’s deal, then, reduces churn: customers tied to a larger package are less likely to cancel their individual subscriptions.
It also strengthens the platforms’ relevance. The company no longer has exclusive access to HBO or Disney material, as it once did.