Competition in the field of television is heating up and Partner announces today (Thursday) that it is lowering the price of its service. The company is coming out with a new package for NIS 49 per month, which is intended for smart TVs only. The service does not include a streamer and customers who want the service and do not have a streamer, can purchase one from the company for NIS 290 or purchase one on the free market.
Recall that Partner raised prices less than a year ago to reduce losses in the field, as TV activity is not profitable, but now and in light of the entry of new players – local and international – the company is preparing to face the change and lower prices, which means activity will continue to be loss-making.
Partner’s move now comes to precede the entry of FREETV from Beit Keshet and RGE and to better prepare for the entry of Disney Plus. FREETV is expected to go up in the second half of the year and include a content package that includes an extended sports channel package, and with content for children, as well as the broadcast channels – all at a price of NIS 40-50 per month, according to estimates.
In June, Disney Plus is also expected to enter Israel as a free app and at the same time a package with yes plus will also be launched. These moves are expected to affect the market and increase competition in it.
Partner decided not to wait and get ahead with its own move.
The company will also launch a package for NIS 99, which includes its package together with Netflix. In doing so, it also strengthens the ties between it and Netflix that have been established from the moment Partner aired with its TV product.
Partner is trying to differentiate the new package from the existing packages in that anyone who subscribes to the NIS 49 package will not be able to order a technician to install the streamer. That means technicians will only be available for the older and more expensive packages.
The new streamers you will launch will be available to customers from all companies and will include the apps of Partner and the international players.
What will the competitors do?
Partner’s decision to lower prices in the TV market is interesting due to the timing it arrives, but the question is what will be the reaction of its competitors and whether a price war will break out here.
Such a war will severely affect the veteran players – mostly Hot and Yes – but leaves a very intriguing question of what Cellcom will do with its TV service.
Recall that Cellcom offered Partner to sell its TV service at the end of last year but the deal did not materialize because Partner only agreed to a deal in which it would acquire Cellcom’s fiber and television operations at the same time.
Another point that is important to note is that in both Partner and Cellcom, growth in television has almost stopped, but competition on their part continues to push prices down. The entry of FREETV, which is currently unknown when it will air against the background of the tests done by the other authority before it airs, is the one that is expected to have a strong impact on the market because it includes RGE’s sports channels and the competitors charge extra.
Partner is expected to come up tonight with a new campaign to promote the move.