Sky’s Igloo service will cease next March, after failing to reach income targets. The Igloo service offers Freeview plus access to a limited number of Sky channels for a fee.
The service was criticised as having the potential to cannibalise Sky’s own subscriber base as much as it might draw new subscribers, although greater threats to Sky have emerged since Igloo’s launch in 2012, which was delayed for several months due to technical issues.
Initially, TVNZ was a minority partner in Igloo, as it had been previously in another failed box-based internet TV offer, TiVo. Since launching Igloo, Sky has begun its own internet-based service, Neon.
Sky is currently pursuing a merger with Vodafone. Earlier this week Sky shareholders voted overwhelmingly in favour of the merger. The deal now heads to the Commerce Commission for approval.