Will Freesat Plus Scupper Sky?

I suspect the markets are far too complacent about the outlook for Sky. I've just installed the new Freesat + box and its a great piece of kit. The digital reception is very good, and I can record anything I like at the flick of a switch. There are more than enought channels there to keep the average person happy -a financial channel like Bloomber would be a good addition to the mix, but I'm sure those will come in time. Piece by piece, Sky's position is being eroded. You can get HD TV and recording facilities from Freesat. You can get sport from Setanta (or the web). You can get all the films you want from LoveFilm or your recorder. What exactly is Sky charging £40 a month or more for? It appears an increasingly arrogant organisation. Look at the way they put their prices up every year. Why? Most private companies reduce costs and prices. Sure, it works for a while. But Sky isn't a value proposition anymore, and in the mass market you have to be offering value. Once the consumers decides you don't, you are toast. You'll never get that reputation back.