Sky’s new charging system for UK licensees

Sky is introducing a new charging system for licensees in the UK.

Sky is introducing a new charging system for licensees in the UK.
Following consultation with pub companies and trade associations there over the past nine months, it’s fees will continue to be based on rateable value but other pub-specific factors will also be taken into account now including the part Sky plays in the fundamentals of the pub’s business, how the premises’ business is driven by factors such as sport, outdoor areas, food and accommodation.
“We’ve talked and consulted with the trade and we are addressing the points they have raised,” commented Iain Holden, Managing Director of Sky Business, "This is part of a journey. There are still things we need to look at, for example accommodation and seasonality.
“We have reacted to what the trade has asked and we can be trusted to act in the same manner going forward.”
But Sky Business is unlikely to lose out on the new arrangement since some pubs will be paying more while others pay less.
From the end of August, HD and 3D will be included in new packages as standard.
“The licensed trade has gone through a number of changes over the last decade and Sky recognises that it is a more diverse industry than ever,” continued Iain Holden, “As a result we have reviewed our pricing structure to see if there was a fairer way to reflect these changes; we have created a structure which we believe more accurately reflects the value that Sky brings to the individual premises.”
Here, VFI Chief Executive Padraig Cribben told Drinks Industry Ireland, “This statement of change by Iain Holden refers to the UK only where they have a very different system of assessing charges than they have here. In the UK it is based on rateable valuation and that valuation includes areas like bowling greens and skittle alleys that have no reference to TV usage. I understand that Sky have excluded this from their calculations but I have no doubt that for every licensee that is paying less there is another one paying more. The overall Sky intake will not be reduced – in fact it will increase in line with the increases imposed here”.

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