Sky Broadband Price Increase 2024: What You Need to Know

Sky Broadband and TV customers, brace yourselves. Your monthly bills are set to rise by 7.5% from April 2024. This increase comes after a substantial 11.7% hike last year, leaving many customers questioning the value of their broadband and TV packages.

The price increase will affect both new and existing customers, with the average increase expected to be around £3.50 per month. This may not seem like a significant amount, but it can add up over the course of a year, especially for those already stretched by the rising cost of living.

Breaking Down Sky's Price Increase

Sky's 7.5% broadband and TV price increase for 2024 is a result of two factors:

1. The Consumer Price Index (CPI) rate of 3.7% inflation hike from January 2024
2. An additional 3.8% added by Sky

For the average Sky Broadband and TV customer, this translates to an extra £3.50 per month, or £42 per year. While this may seem manageable, it's important to consider the cumulative effect of these annual price hikes.

Sky's Chief Operating Officer, Devesh Raj, stated that the price increase is necessary to support the latest innovative technology, connectivity infrastructure, and unmissable entertainment. He also mentioned that Sky is investing in data centres and network upgrades to provide the best experience for their customers.

However, many customers may find it difficult to appreciate these improvements when faced with yet another price increase. This is especially true for those who are still within their minimum term and unable to switch providers without incurring extra costs.

The monthly price increase will take effect from 1st April 2024 for all affected customers. Sky will start notifying customers of the yearly price increase in February, giving them a 30-day window to cancel their contract without any penalty fees. If you are a Sky customer and have not received any notification by the end of February, it is recommended to contact Sky directly to confirm if your bill will be affected by the yearly price increase and to provide full clarity on the changes to your products and services. However, if you take out a Sky deal now, the price of your package won't go up till 2025. The prices you see now will be what you pay until next year.

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The Wider Context of Sky's Price Hike

Sky's price increase doesn't exist in a vacuum. It's part of a broader trend of rising broadband and TV costs across the UK. Let's take a look at some key statistics:

• Customer Base Impact: Sky has approximately 6.2 million broadband customers in the UK, all of whom will be affected by this price increase. This includes both standalone broadband customers and those who bundle broadband with TV and/or phone services.
• Comparison with Inflation: Sky's 7.5% increase is nearly double the current UK inflation rate of 3.9% (as of March 2024). This means that broadband and TV costs are rising significantly faster than the general cost of living.
• Service Improvements: Sky has stated that the price increase will help fund ongoing improvements to its broadband network and TV services. The company has committed to investing £1 billion over the next three years to upgrade its infrastructure and improve service reliability.
• Customer Satisfaction: Despite these planned improvements, Sky's customer satisfaction ratings have declined in recent years. In Ofcom's latest broadband and TV customer satisfaction survey, Sky received a score of 80%, down from 83% the previous year.

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Switching Trends: Sky's previous price hikes have led to an increase in customers switching to other providers. In 2023, following the 11.7% price increase, an estimated 250,000 customers left Sky for cheaper broadband connections from new broadband providers.

1. Market Competition: The UK broadband and TV market remains highly competitive, with numerous providers vying for customers. This gives consumers the power to shop around and switch to better deals if they're unhappy with Sky's price increase.

Sky vs. Other Broadband and TV Providers

Let's see how Sky's 7.5% price increase compares to other major providers in the UK:

As you can see, Sky's increase is actually on the lower end of the spectrum. However, it's important to look beyond just the percentage. The actual monetary impact will depend on your current package and pricing.

For example, if you're currently paying £50 per month as price of your your package (Sky Broadband and TV package), a 7.5% sky price increase would mean your monthly increase will be £3.75 to your monthly bill. Over the course of a year, that's an additional £45.

It's also worth noting that while Sky's price increase may be lower than some of its competitors, it's still a significant hike. For many customers, this will be the second consecutive year of substantial price increases, which can put a strain on household budgets.

What Sky's Price Increase Means for You

The impact of Sky's price increase on you will depend on your specific circumstances. Here are a few scenarios to consider:

1. If you're in contract: If you're currently within your minimum term, you may not be able to switch providers without paying an early termination fee. However, if the price increase takes you above the minimum guaranteed price in your contract, you may be able to cancel without penalty. Check your contract terms and contact Sky customer service for more information.
2. If you're out of contract: If you're no longer within your minimum term, you're free to switch providers at any time. This could be a good opportunity to shop around for a better deal, especially if you're not happy with the price increase.
3. If you bundle services: If you currently have a package that includes Sky Broadband, Sky TV, and/or Sky Sports, the price increase will likely affect all of these services. Consider whether you're getting value for money from each component of your package.
4. If you're a new customer: If you're considering signing up for Sky Broadband or TV, be aware that the advertised prices will be subject to this increase in April 2024. Factor this into your budgeting when comparing new deals for broadband packages.

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Your Options as a Sky Broadband and TV Customer

If you're a Sky Broadband and TV customer unhappy with the looming price hike, you have several options:

1. Negotiate with Sky: Contact Sky's customer retention team and try to negotiate a better deal. They may offer you discounts or additional services to keep you as a customer.
2. Switch providers: If you're out of contract, take advantage of your freedom to switch providers. Use comparison websites like Free Price Compare to find the best broadband and TV deals in your area.
3. Adjust your package: Review your current Sky Broadband and TV package. Are you paying for channels, services, or features you don't need? Downgrading to a cheaper package could offset the price increase.
4. Cut unnecessary extras: Evaluate any add-ons or extras in your Sky package, such as Sky Sports or Sky Cinema. Removing these could help reduce your monthly bill.
5. Consider alternative services: If you're mainly interested in Sky TV content, consider switching to a streaming service like NOW TV or Sky's own Sky Stream service. These often have more flexible contract terms and could work out cheaper than a traditional Sky TV package.

The Bottom Line

Sky's 7.5% broadband and TV price increase in 2024 is undoubtedly frustrating for customers, especially in light of last year's significant hike. However, by understanding your options and proactively managing your Sky package, you can minimise the financial impact.

Remember, as a consumer, you have the power to vote with your wallet. It would be good idea to shop around, switch providers, or negotiate for a better deal. With a competitive broadband and TV market and tools like Free Price Compare at your disposal, you can ensure you're getting the best value for your money.

Frequently Asked Questions

Can I cancel my Sky contract due to the price increase?

• If you're in contract with Sky, you may be able to cancel without penalty if the price increase takes you above the minimum guaranteed price in your contract.
• Review your contract terms and contact Sky customer service for more information.

Will the price increase affect all Sky Broadband and TV customers?

• Yes, the 7.5% price increase will apply to all Sky Broadband and TV customers, regardless of their package.
• However, the exact monetary impact will depend on your current package and pricing.

How does Sky's price increase compare to previous years?

• Sky's 7.5% increase in 2024 is lower than the 11.7% hike customers faced in 2023.
• However, it's still a significant increase, especially considering the cumulative effect of annual price rises.

Can I avoid the price increase without leaving Sky?

• You may be able to mitigate the impact of the price increase by negotiating with Sky, adjusting your package, or removing unnecessary extras.
• However, the only guaranteed way to avoid the increase entirely is to switch to a cheaper provider.

Will the price increase affect the quality of my broadband and TV service?

• Sky has stated that the price increase will help fund network improvements and service reliability.
• However, the direct impact on your individual broadband and TV quality may vary.