Sky Clashes with NTL over Revenues

14 December 2006

LONDON: News Corporation-controlled UK satellite giant BSkyB has put cable rival NTL's nose even further out of joint by clashing with Flextech, the latter's programme-making arm, over subscription revenues.

Sky, which effectively scuppered NTL's pursuit of ailing British commercial broadcaster ITV [WARC News: 06-Dec-06], is reportedly cutting the amount it pays Flextech for its channels, which include Living and Bravo.

In response, Flextech is threatening to make its channels free-to-air, even though subscription sales currently account for 40% of its revenue.

Comments Sky: "We negotiate agreements with channels all the time and they take place in private. Discussions are ongoing."

Data sourced from Media Week (UK); additional content by WARC staff