Sky - adding insult to injury, says Andrew Pring

Don't be afraid of asking a premium price for a superior product. That's one of the trade's current mantras. So when Sky charges top dollar for next season's football package, shouldn't we applaud it for having such faith in its excellent product? Especially as it did offer to freeze subscriptions for 2007-8 if licensees also signed up in advance to a heavily discounted secondary package of games.

Well, that's one way of looking at it. And as Sky unveils its prices for next season, the licensees who did indeed buy into the offer will be congratulating themselves on their foresight. They've come out of it very well indeed, paying the same price as last year for the basic package - actually an enhanced package over last season - with a 20% discount on the accompanying Football+ package of late-Saturday afternoon and Monday-night games.

Those who didn't sign up in advance, or those starting up TV football in a pub now, are staring down the barrel of a hefty increase - an average rise of 11 % over last season. And they will be feeling well and truly shafted.

For as Sky itself noted back in April: "We understand this is a challenging time for licensees, particularly in view of the smoking ban."

You can say that again.

So to be facing a rise of nearly four times inflation is a kick in the ankles of Roy Keane proportions, even if the Football+ package is still being offered at the same price as last year. Not allowing you to cancel and get a refund at any stage of the season just adds insult to that injury.

Sky defends its pricing by saying it has had to pay far more for the six packages up for auction than the previous three-year deal.

Sure - but why couldn't Sky come clean with licensees about next-season pricing back in April, when it made its discount offer? Many would not have trusted Sky and therefore hesitated to commit themselves in advance of knowing the full picture.

They have lost out, and will be kicking themselves. But those who did sign up will be nervous about the 2008-9 season. Will their subscriptions rise 11% to come in line with this year's undiscounted rate, with a fresh and major rise added in? That's how insurance companies do it - a big discount wins the business and they sting the customer next year.

Let's hope that's not Sky's plan. And let's hope next time, no one is any doubt about what the costs will be. Openness is surely always the best policy.