Sky's price freeze conundrum

By John Harrington

- Last updated on GMT

Related tags All-party parliamentary beer Parliamentary beer group Sky sports Sky

Sky's price freeze conundrum
Licensees left to ponder whether to jump in now or wait for next season's basic service costs to be announced

Sky is offering to freeze the price of its basic subscription for next season for pubs that buy a new secondary package of games - with a 20% discount - before the end of May.

Those, however, who remain with the basic package, which contains all the key weekend games, will not now get Monday night matches and will not get to hear what Sky plans to charge after May, until the offer has closed.

It would be fairer to hard-working licensees if Sky announced the costs of the basic package now, so an informed choice can be made​John Grogan MP, chairman All-Party Parliamentary Beer Group

John Grogan MP, chairman All-Party Parliamentary Beer Group, accused Sky of trying to pressurise licensees into signing up for both packages before they know next season's prices.

Sky's offer creates one large group of winners.

Pubs that subscribe to both Sky packages this current season will get an equivalent package next year, with a 20% discount on the secondary package. Those pubs that only subscribe to the basic package this season may be tempted by the discount window to sign up for both packages rather than face uncertainty.

The Monday night games, the rights to which are owned by Setanta next season, will now only be available via the second enhanced package, Football +.

This will cost the same as this season's Prem Plus, which it is scrapping.

Sky is marketing the price freeze as a way of helping pubs cope with the challenges caused by the smoking ban.

A Sky spokesperson said: "We understand that this is a challenging time for our customers, particularly in view of the smoking ban, and we want to recognise their loyalty by ensuring that their businesses can continue to best benefit from the range of live sport available with this great new offer."

All-Party Parliamentary Beer Group chairman John Grogan, who wants TV regulator Ofcom to investigate Sky's broadcasting of football in pubs, accused Sky of "bullying" hosts to sign up to a "gold-plated" package.

Grogan said: "At first glance Sky seems to be putting licensees in an impossible position.

"Whilst Sky presents itself to be offering a price freeze, others may interpret it as a price squeeze on licensees.

"It would be fairer to hard-working licensees if Sky announced the costs of the basic package now, so an informed choice can be made."

Federation of Licensed Victuallers Associations chief executive Tony Payne said: "If you are making an offer, you've got to make it plain what's on offer. You can't make a decision unless you've got all the information."

An industry observer, who declined to be named, said: "The Sky offer will leave many licensees torn as to whether or not to dive in and sign up for both packages."

What's on offer​Football + package includes:* 46 live Monday evening Premiership games* 60 Scottish Premier League games* Other sports channels - British Eurosport and British Eurosport 2

Sky basic package includes​:* 23 matches shown at 4pm on Sunday* 23 matches shown at 1.30pm on Sunday* 23 matches shown at 12.45pm on Saturday* 23 matches on midweek evenings, bank holidays and occasional Saturdays and Sundays

Related topics Licensing law Sport

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