should sky's subscription drop after 12 months?

[Dave9946]

Either it does and should or I'm missing the point?. But it's not something I'd really thought about untill we started subscribing to sky recently.

So we know the minimum sky subscription is what, 12 months at £19.50 pm?. And we know that the minimum subscription would also cover the receiver cost which a customer owns after 12 months.

So do any of you sky subscribers out there know if the subscription therefor drops by any real amount after the first 12 months?. As surely the minimum subscription should not include the cost of funding the receiver after 12 months yet a family member says they have been paying the same price for the last 2 years. So in theory have paid for the receiver cost 2 times over.

Any thoughts on the subject as why should anyone still be paying for the receiver when that would assumingly be covered in the first 12 months?.

[Kymmy]

Actually sky cover the receiver for a year from the profits from your subscription. hence they ask for a minimum 12 month term. After that time if you decide to stay they are getting their normal profit.

Your logic really says that you are paying off the receiver for the fist 12 months but that is incorrect

[Dave9946]

Whilst I partly agree with that what they charge as a minimum subscription still covers the cost of the equipment. So after 12 months they are making far more profit that they deem the minimum accceptable for a given customer. Will be interesting to see how they handle this after our 12 month when this is brought to there attention. As I'd guess RRP aside the cost of install and equipment would work out at about £120-£150 cost price?. Certainly sky customers would assumingly be in a strong position for a retention deal than virgin could offer.