Pubs drop Sky due to excessive cost

By John Harrington

- Last updated on GMT

Related tags Licensed multiple retailers Subscription business model Business model

Pubs drop Sky due to excessive cost
45% of licensees have cancelled Sky and 90% of cancellations were due to cost

Pubs are ditching Sky because of the cost, according to a survey by the Association of Licensed Multiple Retailers (ALMR) via the MA's website.

The ALMR said it confirms a survey of its own members, which found two-thirds of multiple operators are cancelling subscriptions on the grounds of cost.

A total of 139 licensees responded to the survey, of which 41% were currently Sky subscribers.

In the end, it is not just the licensee who is out of pocket, but also ordinary sports fans​Kate NichollsALMR

It found 45% of respondents had recently cancelled a subscription. When asked why, 90% cited the cost.

Of the 82 non-subscribers — who had never used Sky or had cancelled — all said the reason for not taking it was the cost.

None said it was because Sky did not fit their business model.

Sky announced an 11% rise in the subscription costs for pubs to show Premiership football in the 2007/2008 season.

This followed double-digit percentage increases over previous seasons.

ALMR spokeswoman Kate Nicholls said: "For the first time, we have clear evidence of the impact of Sky's successive swingeing price increases — potential subscribers are being priced out of the market and existing customers are being forced to cancel subscriptions.

"As a result, pub customers are being denied the ability to watch big games for free in a social atmosphere.

"In the end, it is not just the licensee who is out of pocket, but also ordinary sports fans."

Big turn-off

Nicholls said the findings mirror the ALMR's membership survey, which covers 25% of the UK managed multiple estates.

This found a 20% fall in the proportion of operators' estates subscribing to Sky in March 2008, compared to March 2003.

It revealed a year-on-year fall in subscriptions in each of the past five years, with two thirds of multiple operators cancelling a subscription on the grounds of cost.

"The product may still be a 'must have', but the cost is a big turn-off.

"Operators are clearly at the end of their tether with Sky, and these surveys send a clear message — enough is enough."

The ALMR was asked by media regulator Ofcom for details on any harm caused to licensed premises by Sky's prices, as part of its investigation into the pay-TV market.

Related topics Licensing law Sport

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