Quote:
Originally Posted by Chad
"The satellite broadcaster currently sells its Sky Sports 1 and 2 channels to customers of other broadcasters, such as TalkTalk and Virgin Media, as well as BT’s Vision service. However, a recent competition ruling means that Sky is now not required to offer Sky Sports to other broadcasters, and in the face of an increasing threat from BT, it could choose to stop selling the channels."
I didn't know this. Didn't I read recently that SKY are stalling talks with Virgin in regards to a new carriage deal for SKY Sports until they know what kind of deal BT agree with Virgin?
Just think of the potential ramifications. If BT and Sky don’t agree a mutually acceptable deal, SKY could very well pull SKY Sports off the BT platform. If BT and Virgin agree a deal for BT sports to go into the XL package, SKY could pull SKY Sports off the Virgin platform. That would mean the only place to get all football fixtures would be SKY as BT have already confirmed their channels will definitely be on the SKY platform.
Whilst people might suggest SKY will never do this due to lost revenue, I think it’s a real possibility. SKY could offer SKY Sports directly to BT customers via NOW TV. SKY could also restructure their pricing for SKY Sports to attract customers from both BT and Virgin.
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Quote:
Originally Posted by tvtimes
Can't see Bt willing to do that. Why strengthen a rival platforms tv service?
---------- Post added at 14:48 ---------- Previous post was at 14:42 ----------
Sky couldn't afford to do what you're proposing I don't think.
They have paid well over what they would normally have paid. They will have lost significant profits and they will need to recover that overspend and they can't exactly whack the prices up to an unacceptable level because the majority of people just wouldn't pay it.
The pricing model for Now tv for PL football is a complete rip off.
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I think the article I quoted have it wrong. Surely SKY must still have to wholesale SKY Sports 1 and 2.
I still think Virgin are still caught in the middle of the battle between SKY and BT. SKY are holding out from negotiating a new carriage with Virgin, for SKY Sports, until they see what deal BT and Virgin agree for the BT Sports channels. If BT Sports go into the XL package, and SKY can't agree a similar wholesale deal with BT, I can see the following happening:
1. SKY Sports 3 & 4 being withheld from Virgin and BT
2. SKY Sports 1 & 2 HD being withheld from Virgin
3. A sudden hike in the wholesale price for SKY Sports 1 & 2
SKY have already confirmed they do not rely on advertising revenue so SKY Sports 3 & 4 being withheld from Virgin would not be a big loss. Whilst there would be a dip in revenue coming in via Virgin due to witholding channels, SKY could easily make up the shortfall by attracting new customers with half price offers and being able to advertise they are the only platform in the UK to carry all SKY Sports channels and all BT Sports channels.
We've seen SKY making decisions that people didn't think possible, or reasonable, in the past. The SKY basic channels being withdrawn from Virgin for 18 months, SKY Sports News being taken off freeview and put behind a paywall and if you beleive what you read SKY Atlantic being withheld even thought other TV providers are making good offers for the channel. If SKY can't get the deal they want from BT, I think the ramifications for everyone else could be grim.