Quote:
Originally Posted by denphone
Given that our next price rise is likely to be £3 or £4 then it does not seem that much but one suspects Sky are asking much more then the amount mentioned.
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At first glance, it does sound like they are arguing over pennies, but multiply this recurring monthly cost by the number of VM subscribers who would be entitled to this channel (M+ and above??) and it soon adds up to a considerable sum.
Also, bear in mind that most channel operators only receive pennies per subscriber per month from VM (and some receive nothing or even pay to be on the platform).
Despite this, many need these aggregated pennies to survive as they could not survive on advertising alone. The closure of Current TV is an example of this and Sky obtain much more revenue from subscriptions than they do through advertising.
Edit 1: Also, bear in mind that VM has to charge their customers VAT, so any charges are inflated by 20%.
Edit 2: Forgot to say, I also asked about Baby TV going from standalone to XL. This is the second time that this rumour has been mooted, again no-one has heard anything about this.