Sky's 13per cent increase in pub football charges
Sky has announced that subscription costs for pubs and clubs will increase by an average of 13% from August.
The news will come as a blow to pubs that show Sky Sports football and already pay an average of around £600 a month.
The 2006-2007 season is the last year of Sky's existing contract with the FA.
The 13% increase will increase fears about Sky costs in the 2007-2008 season with Sky and fellow statellite firm Setanta paying a combined 50% extra for rights.
Sky believes the price increases are justified and says
research shows more people are visiting the pub to watch its live sport.
A Sky spokesman said: "There are more people watching live sport in pubs and clubs, at a time when there is more televised live sport being shown than ever before.
"Sky offers pubs and clubs the opportunity to show the best
televised sport available and we believe that businesses that choose to take Sky do so for sound commercial reasons."
Wolves & Dudley recently revealed it planned to remove Sky from 50% of its 280 Pathfinder managed pubs because of its spiralling cost.
Pathfinder managing director Derek Andrew said: "It is not wise to build a retail proposition on service whee costs go up by eight to ten times inflation."
Sky has insisted live football is proving an ever more popular draw in pubs.
Independent research by Continental Research estimates that, on average, more than 6.1 million adults now watch live
sport in a pub or club each week.
This is up from 5.4 million at the end of the 2004/05 season.
Your CommentsRobert Feal-Martinez via email 15/06/2006"Perhaps Continental Research could reveal, what proportion of the sport watched is on terrestrial, because remember a large chunk of European games are freely available. Also there has been hightened interest due to the coming of the World Cup, but having travelled around a bit in the last week, there are certainly not lots of people in pubs during the weekday matches. I was the only person in a venue with a big screen watching what was probably the best game so far, Spain/Ukraine. Mind you I could be bias afterall my father was Spanish. As I have said before the only way Sky will be stopped is by the OFT, but we know what their definition of monopoly is, 'big money' and Rupert Murdoch, Tony's friend leave him alone.
Dave via email 15/06/2006"Whilst i personally take the simplistic approach of Sky: its either worth the money or not, the benefit of having it is greater than the cost.
I do accept that a 25% price hike over two years is just not acceptable - they havent introduced anything over the past two years that warrents this sort of price increase, in fact they've started further segmenting their offer and charging for that (movies, sports events, premier plus)
in short its blatent profiteering on the back of what is a fantastic product."
Ken Linden via email 15/06/2006"We have sky installed on our premises at Castle Vale Residents Club B357HF rather than make a profit by having sky in we our compelled to pay for it not to make a profit but to stay solvent in this day where all pub outlets have sky if we did not our customers would go else where it is a know win situation either pay the money or risk your club going bankrupt every month we have to juggle the money to pay our bills."
Ritchie via email 15/06/2006"I can now confirm that my business will start making great savings as from Wed 5th July. goodbye sky hello happiness.
How many others is going to follow suit, to prove a point, ie sky is a total RIP OFF."
Jerry Lonsdale via email 15/06/2006"With regards to the recent price hike by Sky, when will we ever learn, it's not us who run our pubs but Sky, I had removed Sky from my premisis 18 months ago, and at first I did have a slight drop in takings but that was almost covered by what I was paying sky, if evey one who has sky in their premisis just turned it of for one month then I'm sure sky will listen. I am know sky is aware that this won't happen so I look forward to their next price hike and and smile thinking thank god I'm not paying for that."
Duncan Steele via email 15/06/2006"We think that sky are ripping the trade off and the the prices that thay charge are far to high."
Norman Green via email 15/06/2006"Comment:Sky Football has never increased our profits, maybe our takings on selected matches, but we are a Midlands Pub, a Leicester City Pub, a community pub that depends on regulars and the local community to support us. The fact that we cost SKY into our budget dosn't interest them, they don't understand the cost involved, and that's no disrepect to anyone but every time I mention how much SKY costs us to broadcast they are absolutely amazed, just don't connect, just don't understand that we have to price our beers etc accordingly in order to maintain our business.
Sky have cast me aside like I never existed, 5 years of Sky have cost me something like..£30,000 . Peanuts compered to the millions made off other licensees.
Very Bitter,N.H.GreenBlack Dog InnOadbyLeicester."
Kevin O'Connor via email 15/06/2006"13%? I wish - Ours is 36%. If they showed the big teams every week it would probably pay for itself, but Portsmouth-Wigan on a cold rainy Monday night not a chance."
Chris Hawkins via email 15/06/2006"As long as publicans keep subscribing Sky will keep on increasing the price! Providing entertainment in pubs should not be seen as a non profit making venture. Every licensee has to look at the return on investment with any form of entertainment they provide.
We are seeing an increasing number of pubs removing Sky as it no longer provides value for money. Pathfinder Pub's is an example of this. Would you put on a beer that you sold for less than you paid for it? Somehow I doubt it!
If it doesn't give a return on investment then cancel and spend your hard earned entertainment money elsewhere.
Chris HawkinsMarketing DirectorBuzztime
Mick Macauley via email 15/06/2006"Once again the licensed trade has to carry a huge price hike. Sky TV prices are totally unjustifiable and it is about time that someone took them to task over it. I have just received my letter confirming the price rise, and ironically in the same delivery was a flyer from Sky offering me a better package for just £10 per month, come on Sky, that is just taking the P***.
I now have to make a decision of whether or not I can justify keeping Sky in my premises. As has been said by another letter, we have Sky to bring in the customers, but when we realistically work out the average spend per customer per Sky viewing, and then reduce that figure to profit not turnover, it is quite apparent that Sky are making a killing on the price, not the publican.
I think it's about time that we all stood up to these money making robbers and said enough is enough. Sky could stop wasting money, let's face it, who took any notice of the pathetic cardboard cut out that they just sent out to everyone in the Preview magazine that was supposed to show us what HD tv is going to be like. Sorry Sky but at your prices it will a he
