BT Vision has launched a new cheap deal for Sky Sports to home customers — a move which may add more pressure on pubs.
BT has slashed the price of Sky Sports to as little as £6.99 a month for Sky Sports 1 and ESPN if customers commit to a bundle of broadband and calls for 24 months.
Customers wanting to add Sky Sports 2 to the package would pay £11.99 a month and those wishing to simply pay for Sky Sports 1 and Sky Sports 2 can do so for £16.99 a month. Sky currently charges a minimum of £26 a month for its sports package.
Pubs fear the price cut could see more people stay at home and take advantage of cheap beer deals in supermarkets.
The price cut comes after Sky reached an agreement with media watchdog Ofcom to allow its rivals Virgin Media, BT Vision and Top Up TV to broadcast Sky Sports 1 and 2 next season.
Ofcom had ordered Sky to slash its wholesale prices to its rivals by 23.4% to £10.63 a month. However, Sky is appealing Ofcom's decision to the Competition Appeal Tribunal (CAT).
The temporary deal for next season will see its rivals pay the rate card for Sky with the difference between that and the Ofcom recommended wholesale price being placed in a separate account under the control of the CAT.
Sky price hike
Sky has responded by increasing retail prices by £3 a month, which automatically triggers a rise in the wholesale prices charged to rivals. As a result, BT is likely to make a loss on its sports coverage.
The wholesale price of buying both Sky Sports 1 and Sky Sports 2 together will rise from £17.14 to £19.07 a month.
Most Sky customers, who subscribe for basic channels alongside Sky Sports, will see their monthly bills rise from £35 a month to £38 a month.
"We expect that entry prices as low as £6.99 will welcome in a huge number of extra customers who'd love to enjoy these channels, but thought they were too expensive," said Gavin Patterson, chief executive of BT Retail.
"A more competitive market will ensure that customers continue to get the best sport for the sharpest prices and this opening of the market will be in the best interests of customers."