Why the Sky Network (ASX:SKT) share price is marching higher today

The Sky Network Television Limited (ASX: SKT) share price has lifted 3.23% higher after the company renewed a multi-year deal with Discovery.

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The Sky Network Television Limited (ASX: SKT) share price is lifting today after the company announced a renewed multi-year deal with Discovery. At the time of writing, the Sky share price is up 3.2% at 16 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.7% to 6,915 points.

Discovery is a popular American multinational television network that provides viewers with real-life entertainment, including factual and lifestyle shows.

Renewed partnership

According to the announcement, Sky has extended its partnership with Discovery under a multi-year agreement.

Although no exact terms have been released, Sky said customers would be offered a raft of well-known programs. These include Discovery Channel, TLC, Discovery Turbo, Living, Food Network, Animal Planet, and the newly launched channel, Investigation Discovery.

In addition, Video on Demand (VOD) rights will be expanded for Sky Go, Sky On Demand, and Neon. And the Discovery Channel will be included in its starter package to attract new customers.

Furthermore, Sky said Investigation Discovery would debut in New Zealand under the entertainment package in early 2021.

What did management say?

Commenting on the partnership extension, Sky chief executive Sophie Moloney said:

We know our customers love Discovery's premium programming, and we are delighted to continue our 26-year partnership through a renewed deal that responds to our customers' needs and the content landscape in New Zealand.

New Zealanders are spoiled for choice when it comes to content. Our partnerships with the world's leading content creators makes it easy for Sky customers to enjoy the best and broadest range of storytelling; all in one place. We are excited to deepen our offering of Discovery's premium content by welcoming Investigation Discovery to New Zealand in 2021.

About the Sky share price

The Sky share price has fallen dramatically in the past 5 years. After reaching the $6 mark in 2015, the Sky share price is now swapping hands for 16 cents, a 98% wipe out of its prior value. 

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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