Smartbox debt enrages hosts
Furious hosts have rounded on interactive TV service Smartbox, demanding to know exactly when and if they will be paid.
The Morning Advertiser has been inundated with calls from Smartbox customers reporting that they are owed hundreds of pounds by the company since revealing three weeks ago that the company was experiencing "growing pains" and had stopped paying licensees, blaming "technical issues".
It has promised to pay hosts all the money they are owed.
Alarmingly, even a licensee put forward by Smartbox as one who had benefited from the system told the MA she was owed £750.
Josie O'Reilly of Warwickshire's Plough and Harrow in Leamington Spa won £500 in a Littlewoods Pools promotion run through Smartbox.
"I haven't been paid either - they asked me not to say anything, but why should I keep my mouth shut when they owe me £750?" she said.
O'Reilly must fork out £381 a month for three years for her two plasma screens and 28-inch TV and is meant to be paid £50 a week by Smartbox.
"I won the competition through my hard work. I only take £4,000 a week and have to pay £1,000 rent, so the money I'm owed is a big deal to me," she said.
Despite Smartbox's promise to pay up, many licensees are pessimistic after previous disappointments.
"I've had a cheque for £600 bounce three times," said Mark Humphreys of the Good Measure in Caldicot, Gwent.
"I've cancelled my standing order but ultimately I think I will have to continue paying the lease. I am not holding my breath about payment."
Other hosts confirmed similar bad experiences.
Smartbox works for me
Deborah Dawson runs five Lancashire pubs and has installed Smartbox in four. She claimed she'd never had a problem with Smartbox. "I get paid every time," she said. "If there's a problem they fix it. The idea behind Smartbox is great as you can make money from selling your own ads. Everyone wants to advertise on it, including take-aways and taxi firms."
Hosts' Fury at Smartbox's failure to pay
Karen Ledger, the Clifton, Worthing, West Sussex. Owed: £2,000
"I've been promised payment in a fortnight but they've promised this many times. I don't think I'll ever get a penny from them."
Lee Holmes, the Smithy Inn, Preston, Lancashire. Owed: £1,500
"Smartbox's cheque bounced. They promised to pay me £910 this week, which is still short of what I am owed."
Barry Russell, Londonderry, Oldbury, West Midlands. Owed: £1,000
"It is unbelievable - like talking to a brick wall. The only time they phone us is to try and sell us Smartbox - which we already have."
Julian Harris, Lion & Bell, Congleton, Cheshire. Owed: £800
"I've heard all their excuses and promises to get back to me. Two cheques have bounced but I still have to pay the lease. Smartbox has made a mockery of its contract with me. Why should I continue to stump-up cash?"
Hadrian Stross, Plough, Woking, Surrey. Owed: £700
"I call them three times a week - nothing's happening. They've stitched it up nicely."
How Smartbox (doesn't) work
Smartbox offers the chance to subsidise TV costs by taking a cut of fees from adverts shown via its system. Weekly DVDs also show sport, music and entertainment news.
Sheila Nolan of the Rose and Crown in Congleton, Cheshire, took out a three-year lease on equipment provided by Smartbox's parent company Vision Leisure Services and financed by independent companies such as Lombard Direct as a separate agreement.
Nolan pays £203 monthly and should receive £50 weekly from Smartbox, effectively paying £3 monthly. "I never realised it was two separate agreements. They promised me £450 but owe me £850. This could bankrupt me."
Smartbox defence
Smartbox managing director Kate Venables said: "There have been technical issues with the system's display log which has meant that it is taking longer than expected to confirm which venues are compliant. We are working to resolve the delays faced by licensees as a result of this problem to ensure that payment can be processed as per their broadcast agreement. I would like to take this opportunity to assure licensees that they will get paid."
