Sky Sports price freeze splits opinion
On Monday, the Publican’s Morning Advertiser revealed that Sky is freezing subscription prices of its Sky Ultimate TV sports package for pubs “until at least June 2014” and offering half-price deals for new customers until the end of September. It is the third successive year that prices have not increased.
The broadcaster is also providing pubs with a third viewing card to allow them to screen three live events simultaneously, a new app to enhance in-game viewing, and access to on-line training.
The freeze was seen as a positive move by many operators, including c.80-strong Amber Taverns.
The company’s managing director James Baer said: “It’s an important part of our offer and I think that Sky is recognising the cost pressures that pubs are under. There is more focus on customer service and value, as opposed to the monopoly situation of three years ago when there was more of a ‘like it or lump it’ mentality.”
Simon Eyles, commercial manager at Admiral Taverns, said: “We certainly welcome this positive move and recognise the restraint on pricing as part of an increasingly supportive approach to the on-trade.”
Scott Murray, founder of five-strong Bar Sport, added: “It’s a good thing. Obviously, Sky has competition with BT Sport but I didn’t expect it to be a lower price.”
The British Beer & Pub Association also praised the move. Chief executive Brigid Simmonds said: “I am pleased Sky has specifically acknowledged the financial pressures pubs are under. It is also good news that we are seeing more competition for live sport in pubs, which should help to keep prices down in the future.”
However, Kate Nicholls, strategic affairs director at the Association of Licensed Multiple Retailers, said this is “not technically a price freeze”, referring to the fewer Premier League games that Sky will be showing (down from 138 to 116), but added: “It’s good there’s no increase.”
William Lees-Jones, managing director of the Manchester-based brewer and pub operator JW Lees, had stronger views. “I am surprised they are not reducing prices in the light of new competition from BT Sport,” he said.
Some PMA online forum posts also criticised Sky. One user wrote: “Why should they freeze prices when they’ve lost a large percentage of what we were already paying for?”
Another added: “Traditionally customers only come to the pub for football and rugby and that’s where the ‘cut’ has been made in what Sky is offering.”
Alison Dolan, deputy managing director at Sky Business, said: “This is our biggest-ever season of Premier League football.”
She added that Sky will also show several other leading sporting events, including the Ashes cricket series.
“When you consider this quality and breadth of content, as well as our continued investment in programming and added-value features, against a backdrop of rising inflation and content rights costs (our Premier League rights alone have risen by 40%), our decision not to pass a price increase on to customers is positive news for licensees.”
