Quote:
Originally Posted by TV Boy
Sky gets better deal for Flextech channels
Info from The Airwaves
On the day Virgin Media launches it has emerged that Sky has hammered down the amount it pays for the Flextech channels as relations between the two continue to deteriorate.
It is understood that Flextech will only get around 10p/Sky subscriber under the new deal instead of the current 40p/subscriber resulting in Flextech loosing more than £25 million per year in revenue.
According to broadcastnow.co.uk, Sky said it was only prepared to pay for Living TV and Flexztech is understood to be considering its options which could include Trouble and Bravo being rolled into its free-to-air FTN channel on satellite but is unlikely to merge Challenge due to the money Flextech gets from interactive streams.
Negotiations between the two continue over the basic Sky channels with Sky threatining to pull its channels off cable if a deal cannot be agreed. However, Virgin has said that it wants a better deal for the premium Sky channels Sky Sports and Sky Movies saying that it overcharges customers for these services. Cable would manage without Sky Movies due to it offering hundereds of films on-demand but Sky Sports is a different proposition.
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I wonder if one would guess that the deal for Sky's channels is part of the discussions and it's likely that they are staying? A lot of assumptions i know!