More trouble on the Horrizon for BSkyB

info4u · 18-03-2007, 15:25

http://news.bbc.co.uk/1/hi/business/6464307.stm

Advertisers 'demand Sky refund'

Major advertisers are threatening to ask BSkyB for refunds on deals agreed with the broadcaster, a report claims.

From the likes of Honda, Cadburies, Pizza Hut

Quote:

According to the Sunday Telegraph report, Sky has lost access 3.3 million customers which viewed its basic channels on Virgin's cable TV service - 10% of its average audience share.

On the same note, Sky has further issues regarding Freeview pull

Quote:

Meanwhile, Sky's plans to withdraw its channels from free-to-watch digital service Freeview could lead to further trouble for the broadcaster.

In February, the firm said it planned to withdraw Sky News, Sky Sports News and Sky 3 from Freeview and replace them with four pay-per-view channels.

According to the Independent, the BBC, ITV and Channel 4 are planning to call on media regulator Ofcom to strip Sky of its share in the Freeview venture over the decision.

Sky is expected submit an application to Ofcom for it to approve its plans to change its Freeview licence within the next few weeks.

However, if Ofcom believes the alterations will "unacceptably diminish" the channels offered on Freeview it could refuse permission for Sky's plans.

Ofcom, along with the Office of Fair Trading, is also currently looking into Sky's controversial purchase of a 17.9% stake in ITV.

Now some of you may recall my posts about why stay with virgin and some thing that it Virgin the corporate behind all the issues with Sky channels

Well not only have I pointed out some good reasons why you shouldnt go to sky but here is more.
Sky are facing further financial loss from their adverts, loss from the loss of customers, and probably fined for pulling out of the freeview contract

Here is an interesting FACT
http://news.sky.com/skynews/business
http://news.bbc.co.uk/1/hi/business/default.stm
* Accurate at the time of post since this is the homepage for Sky News Business page and BBC News page this will change on a regular basis

Notice that on Sky's website for business nothing is mentioned of this, who is covering up what?
Yes as soon as something is negative about Virgin they will soon publish this

Shares...
Virgin Media
BSkyB

Nikesh · 18-03-2007, 15:29

Good find, interesting story. Thanks.

Horace · 18-03-2007, 15:58

Quote:

Originally Posted by info4u

Now some of you may recall my posts about why stay with virgin and some thing that it Virgin the corporate behind all the issues with Sky channels

Well not only have I pointed out some good reasons why you shouldnt go to sky but here is more.
Sky are facing further financial loss from their adverts, loss from the loss of customers, and probably fined for pulling out of the freeview contract

The first paragraph is illegible and needs rewording.

Why would Sky losing money or getting fined affect a decision on whether to move to them ? It's not like this is going to end up with them going bankrupt or losing channels from concerned suppliers.

Still, as mentioned, interesting reading.

AndyCambs · 18-03-2007, 15:59

I've always thought that the loss of revenue from VM for Sky would be small in comparison to the loss of potential advertising revenue. The Mail On Sunday Financial page says today as well

Quote:

Meanwhile Virgin and Sky have yet to resolve their dispute over the showing of certain Sky channels on Virgin's cable network, despite customer anger at Virgin and the advertising revenue loss to Sky. But the industry insiders said a deal might be looming. A source said "Sky plans a weekend at Easter with all the big shows that Virgin subscribers missed when channels were pulled two weeks ago. I think there is every chance a deal will be struck before then."

pachelbel · 18-03-2007, 16:03

Boy,Oh Boy, Oh Boy, I bet the Sky Boardroom is seeing many discussions at the moment. What can happen in the space of a couple of months, there were Sky just snapped up 17% of ITV, plans to take over Freeview and dominate the UK broadcasting sector and all of a sudden pop the balloon got burst. Even some of our MP's are unhappy and once they get their teeth into an issue then I think Sky will need to use all their favors with Blair and Co.

Nedkelly · 18-03-2007, 16:18

Great reading

Chris Howell · 18-03-2007, 16:28

The heat is on, on the street (and the Sky!)
Inside your head, on every beat
And the beat's so loud, deep inside
The pressure's high, just to stay alive
'Cause the heat is on (on Demand!)

Oh-wo-ho, oh-wo-ho
Caught up in the action - EVERYONE is gunning for you
Oh-wo-ho, oh-wo-ho
(Murdoch can you feel it)
(Murdoch can you feel it)
(Murdoch can you feel it)
The heat is on, the heat is on, the heat is on
the heat is on Oh it's on the street, the heat is - on.

colin-bennett · 18-03-2007, 16:41

good info.
The jury is still out but more info emerging on sky's long term goal

brundles · 18-03-2007, 19:36

How does 3.3 million VM subscribers equate to a 10% share of Sky + VM viewers when (according to Wikipedia) Sky only has just over 8 million subs?

Chris W · 18-03-2007, 20:50

Isn't that 3.3 million subscribers that VM have including all telephone, BB and TV customers- it is quite possible that VM have around 1mill tv customers although i don't know i'm just estimating.

AndyCambs · 18-03-2007, 21:22

Not all VM subscribers watch the Sky channels?

spiderplant · 18-03-2007, 21:42

Don't forget the 15 million Freeview-enabled TVs.

Bob · 18-03-2007, 21:55

According to the latest earnings report, Virgin has 3.3 million TV customers (that will probably include a significant number of analogue customers who will have also lost out in this spat)

info4u · 18-03-2007, 22:02

Quote:

Originally Posted by Chris W

Isn't that 3.3 million subscribers that VM have including all telephone, BB and TV customers- it is quite possible that VM have around 1mill tv customers although i don't know i'm just estimating.

VM as you know consists of Telewest and NTL customers
Telewest had 1.8 Million customers and NTL had 3.2 million bringing it to 5 million customers. (As a whole between TV, Phone and Internet) but out of the 5 million customers 3.3 million where TV subscribers via Cable TV between NTL and Telewest leaving 1.7 million which where broadband only / telephone only of combination of the both

Sky had 8.8 Million to which 3.3 million was from NTL and Telewest
which works out to be 37.5%

Dont know if that has increased with the aid of mobile customers

---------- Post added at 22:02 ---------- Previous post was at 21:59 ----------

Quote:

Originally Posted by AndyCambs

Not all VM subscribers watch the Sky channels?

Its not about who watches the Sky channels its about the fact they are available to them, (This is the basic ones Sky News, Sky 1, Sky Sports News) which form part of the FREE TV package VM offers therefore available to all VM customers

spiderplant · 18-03-2007, 22:02

In fact the numbers are here: http://www.ofcom.org.uk/media/news/2007/03/nr_20070314

Roughly 30 million digital-enabled TVs in total, 3.3m cable TVs (including 10% analogue).