Debate rages on Sky fee hikes
The size of Sky's price rises have been questioned by operators who say their average increases are roughly twice the level stated by the broadcaster.
Sky said the average increase for 2010/11 is between 9% and 11% — before rateable value adjustments — reflecting "increased investment on screen".
But the Morning Advertiser has learnt that two major managed operators, operating 440 pubs that use Sky between them, put the average rise above 20%.
Similarly, a survey of 1,750 pubs run by 15 Association of Licensed Multiple Retailers (ALMR) members puts the average increase at 21.5%.
And a spokesman for Greene King's managed pubs division said: "If this unjustifiable stance and abuse of market power persists, then Greene King will accelerate an existing trend of Sky removal and conversion of vertical drinking space to eating space allocation."
Marston's managed division reports a mean average increase of over 25% at its 130 pubs with Sky subscriptions. Division boss Derek Andrew said: "We will be yet again reviewing its viability at marginal venues. Sky has held prices for two years and is now clawing back all the lost ground."
Punch said the average increase across its 305 managed pubs was "20% plus".
Double takings
The ALMR's survey said the average cost of subscription has reached more than £15,000. The group said just 4% of venues will see fees drop, on average by 8%. Sky said 30% of venues will pay less next season.
The ALMR said "a typical local would have to more than double its usual takings over the bar on all 92 Sky Premiership match days just to break even on Sky Sports". One in three ALMR members have already cancelled their Sky subscription, according to the trade group. A further third were carrying out a cost-benefit analysis.
The ALMR's survey also found 94% of outlets faced an increase in their current costs — for some smaller venues by as much as 32%.
However, a Sky spokeswoman said it would show 46 more Premier League matches than the ALMR stated. "This year we'll offer more than 40,000 hours of top-quality sport, including 138 live Premier League matches and up to 15 matches every week during the UEFA Champions League.
"This is in addition to the Football League, SPL, international football, Premiership, European and international rugby, the Ashes and the Ryder Cup. In total, there will be more than 550 live football matches alone."
It should also be pointed out that first year increases have been capped at 35% and the prices stated don't take into account possible future deductions based on factors such as a pub's food trade and outdoor area.
