Sky News explores subscription options as the financing agreement runs out

After its financing guarantee, less than four years from now, Sky News is looking at new subscription options.

• Content could be reserved to pay users.
• Less resource to life and breach of news content.

David Rhodes, performing chairman at Sky News, revealed to the staff this week a new strategy for the news broadcast area.

It plans to reshape its online services in the next five years to attract new audiences who are willing to pay for news.

The proposals are understood to include new “topic -hubs” that offer payment -walled services from podcasts and newsletters for events and live shows. Some heavenly news content would be held back for subscribers.

The annomination comes less than four years before guaranteed funding for Sky News ends.

As part of the agreement to buy Sky in 2018, Comcast promised to protect the editorial independence of Sky News and to continue to finance it for a decade after acquiring the British-based satellite TV company. In addition to this point, Comcast is no longer required to cover the cost of loss creation.

Despite the potential new subscription services, there is currently no indication that the most important Sky News channel will be subject to a subscription.

However, Sky is expected to reduce resources from making “live and breaking news” in favor of more durable premium reporting and analysis.

The financing dilemma

News channels are typically loss -making companies. Their operating costs are typically covered by larger TV companies that offset news losses with profits elsewhere in the industry. A number of international news channels receive funding from their respective governments. BBC News, both at home and abroad, is financed by the license fee. Advertisements on international broadcasts and online services offset some of the burden on the license tax payer.

In recent years, wealthy business people have supported a growing number of right -wing news channels and online news platforms. These services are more likely to be offered free to end users to increase range.

How did we get here?

Younger viewers are less likely to flow to a linear news channel. They get their news from streaming platforms, including podcasts.

Sky News has actively expanded the range of its linear channel online with a live stream on YouTube. It can be streamed on the Samsung Galaxy smartphones through the TV Plus app.

But the audience still doesn’t necessarily want to just watch rolling news. Sky believes it may develop other ways of storytelling on digital media platforms. It is important that content that has a longer shelf life than a live breaking news broadcast and one that provides insight that people might pay for.

However, competition in the news sector is fierce. Other News providers also see ways to encourage more users to pay for content.

By: Marc Thornham | Image: Sky