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Sky and ALMR at odds over price hikes

View 8 postsBy Gemma McKenna, 29-Jul-2010

Related topics: Foreign Satellite TV, General News

The long-running dispute between Sky and the ALMR rumbles on — the two are at odds on the actual size of this year's price hike.

The long-running dispute between Sky and trade body the ALMR rumbles on — the two are at odds again on the actual size of this year's price hike.

A survey released by the Association of Licensed Multiple Retailers (ALMR) said the average price rise was a "staggering 21.5%, bringing the cost of a subscription to more than £15,000 for the first time".

But the broadcaster said the average increase has been 9-11%, which reflected "increased investment on screen".

The ALMR survey also shows "a typical local would have to more than double its usual takings over the bar on all 92 Sky Premiership match days just to break even on Sky Sports".

But a Sky spokeswoman said it would be showing 46 more Premier League matches than the figure stated by the ALMR.

"This year we'll offer more than 40,000 hours of top-quality sport on the screen, including 138 live Premier League matches and up to 15 matches every week during the UEFA Champions League.

"This is in addition to the Football League, SPL, international football, Premiership, European and international rugby, the Ashes and the Ryder Cup. In total, there will be more than 550 live football matches alone."

The spat comes as Sky revealed a full year profit of £878m, up from £259m a year earlier.

ALMR's head of communications Kate Nicholls said: "Sky's chief executive today said he wants to build a larger, more profitable business for the long term.

"Our figures show very clearly that it is pubs and bars who will be footing the bill to help realise that ambition. Sky Sports is a fantastic product, and people love watching big games in the pub, but increasingly the maths just doesn't work."

Cancellations

The ALMR's survey of its members found 94% of outlets faced an increase in their current costs - on average by 21.5% but for some smaller venues by as much as 32%.

Just 4% of outlets saw their subscription drop, on average by 8%.

As a result, a third of outlets polled had already cancelled their subscription and a further third were carrying out a cost-benefit analysis.

Those who were choosing to retain their subscription were faced with having to work harder and increase their marketing spend to cover their costs. Two thirds were exploring alternative entertainment.

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