BSkyB could face backlash from pub companies

BSkyB is set for a showdown with pub companies over its subscription charges.

Reports in the national press last week revealed that pub operators are considering cancelling their Sky subscriptions in response to high charges.

This follows what many consider as the failure of the Office of Fair Trading (OFT) to take action against the satellite company over its control of the pub TV market.

The company was cleared in September of conducting a monopoly of sports coverage in the pubs and in December was cleared of breaching competition law after being accused by cable operators NTL, Telewest and the now defunct ITV Digital of over charging them to carry its Sky Sports and movie channels.

Martin Rawlings, of the British Beer and Pub Association, has called on the pub trade to take a stance against the satellite company. He said: "If the powers that be can't do anything about existing monopolies maybe the market should decide.

"Anything between a third and a half of our members that used to have Sky have taken it out because it's not economical anymore. The prices they charge have gone up even more than David Beckham's wages."

In September Greene King, which had Sky in 373 of its managed houses, removed it from 100 of those outlets after it discovered broadcasting live football matches was not lifting sales enough to justify the cost of having the package.

Over the last five years Six Continents has cut subscriptions from two-thirds to one-third of its estate.

The Association of Licensed Multiple Retailers has sent out a questionnaire to its member pub companies asking for their views on Sky and its charges.

It will be deciding on whether to take any action after collating the responses.

BSkyB was unwilling to make any specific comment but said: "We provide a very good value service to publicans against the range of entertainments on offer in their premises."