Retrans row breaks out between Discovery, Sky
Details
Editor
| 26 January 2017

Claiming to be standing up to the pay-TV giant on behalf of consumer choice and for independent broadcasters, content firm Discovery has hit a major impasse in negotiations over a new carriage deal with Sky in the UK.

In what it calls an ‘historic’ move to halt talks, Discovery claims that the pay-TV platform’s retail strategy is limiting consumer choice and hurting independent broadcasters like itself. Discovery asserts that it is now paid less by Sky than it was ten years ago, even though Sky households are paying noticeably more than they did in 2007. Discovery added that in this time it has increased its share of viewing on the Sky platform by more than 20% and has also increased investment in original content by more than 30% since 2010, adding new channels to its portfolio including Eurosport, TLC and Investigation Discovery.

If an agreement is not reached, Discovery warned that the 12 channels and programmes — Discovery Channel, TLC, ID, Eurosport, Discovery History, Animal Planet, Discovery Shed, Home and Health, DMAX, Discovery Science and Discovery Turbo — which make up 50% of all viewing to the factual category on Sky could disappear from Sky and NOW TV households after 31 January.

“We believe Sky is using what we consider to be its dominant market position to further its own commercial interest over those of viewers and independent broadcasters,” explained Susanna Dinnage, managing director, Discovery Networks UK and Ireland. “The vitality of independent broadcasters like Discovery and plurality in TV is under threat. Somebody has to stand up for consumers, because consumers believe they are paying for choice and diversity – they deserve better. Discovery is prepared to take that stand. Pay-TV needs to be about more than just films and football. The consumer can’t be expected to fund all of Sky’s investments and get less and less choice in return.”

For its part, Sky has made no official comment, however UK newspaper the Daily Telegraph quoted a Sky spokesman as saying in no uncertain terms that his company questioned the fundamental value of Discovery's offer and that it would not meet* price demands meaning that the channels will be withdrawn. “Despite our best efforts to reach a sensible agreement, we, like many other platforms and broadcasters across Europe, have found the price expectations for the Discovery portfolio to be completely unrealistic,” the spokesman was reported as saying. “Discovery’s portfolio of channels includes many which are linear-only where viewing is falling. We’ve taken the decision not to renew this contract on the terms offered. We have been overpaying Discovery for years and are not going to anymore. We will now move to redeploy the same amount of money into content we know our customers value."