Trade fury over 11% hike in Sky subscriptions

Trade leaders have reacted with anger at Sky's inflation-busting 11% average increase in its basic subscription charge for next year.

In April, Sky offered pubs and clubs the chance to freeze their basic subscription prices at the 2006/07 rates if they also signed up to its new Football+ package before 22 June. Under the deal, pubs also received a 20% discount on Football+, which is priced the same as the 2006/2007 season's Prem Plus and will include all Monday night Premiership games.

But it had been accused of "bullying" tactics by Labour MP John Grogan for not revealing its basic price at the same time. "The cat is now well and truly out of the bag," said the chairman of the All Party Parliamentary Beer Group. "Yet again Sky is fleecing hard-working licensees who have been their loyal customers for years."

The Association of Licen-sed Multiple Retailers points out that the latest rise is almost three times inflation. "They are closer still to killing the goose that lays the golden eggs - it is going to become increasingly difficult for all but the largest, sports-led bars to make a profit from Sky programming," said chief executive Nick Bish.

"Smaller independent outlets will struggle to afford the latest price increase, especially when these same pubs have been reporting almost flat like-for-like sales."

Fears remain among those who took the early offer that they will be hit with a "compounded" hike next year. Marston's Inns & Taverns has removed Sky from a further 35 pubs across the estate - leaving the system in place at 155 pubs. Last year the managed operator ditched the service from 130 pubs.

"We took advantage of the special offer," said managing director Derek Andrew. "But it remains to be seen how the compound effect will hit us next year - will there be another 11% rise, meaning it is 22% for us?"

Stephen Bale, of the Caledonia Inn in Pembroke Dock, also took up the early offer. "It was obvious prices would go up, so I took the offer. It is not great value, but it keeps people coming in. I pay £236.18 for Sky and then £94 a month for Football+."

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Sky defends rise with claims of more football

Sky has robustly defended its latest price increase, claiming that pubs are getting more for their money. "There is more football than ever before," a spokeswoman said.

"Sky Sports has more than 450 live football matches this season and more than 700

additional live games. More than 3,000 hours of additional sports programming are also available via the new Football+ package."

Sky also had to pay more for the latest three-year games package. The last deal cost the satellite broadcaster £1.02bn, but it had to fork out £1.7bn for the latest deal.

It said prices had not been revealed at the same time as the initial offer, as it was keen to let licensees know as early as possible about how the link-up with Setanta would work.

The Football+ package gives pubs access to Setanta Sports, which will screen 46 live Premiership matches and 60 live Scottish

Premier league games, golf and Celtic League rugby. "It's important to note that much of this won't be available to home viewers unless they subscribe to the Setanta service," said Sky.

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