Discovery issued a "public threat to Sky that it will remove all its programming by the end of this month" if the British broadcaster continues to refuse to "pay a fair price," according to Tom Knowles of the LONDON TIMES. The company behind channels such as Eurosport, Animal Planet and TLC "has spent months in negotiations with Sky over the cost of carrying its channels." Now, however, Discovery has said that "enough is enough" and it is threatening to "switch off its channels." Sky has been seeking to cut costs with its third-party pay TV channels as it "spends more money on original commissioning and exclusive supplier deals." Discovery UK Managing Dir Susanna Dinnage said, "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." Sky claimed that Discovery has suffered a 17% decline in its share of viewing since '13 as TV viewing habits change. A spokesperson said that the company would not be meeting the price demands from Discovery, describing them as "completely unrealistic." The spokesperson added, "We have been overpaying Discovery for years and are not going to any more" (LONDON TIMES, 1/26). THE DRUM's Jessica Goodfellow reported the broadcaster "has asserted that it will pull its 12 channels from Sky and NowTV services" after Jan. 31 if a fair agreement is not reached. Dinnage: "Pay television 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" (THE DRUM, 1/26).
CUSTOMERS' LOSS?: In Dublin, Laura Slattery reported Sky customers in Ireland "may lose access to Eurosport." A ticker is running across the bottom of the Eurosport 1 and 2 channels informing viewers of "the potential loss of the channels to Sky customers," while Sky’s website states that the Discovery portfolio of channels is "unlikely" to be available in its TV packages from Feb. 1. The row, if not resolved, will affect some 5.5 million subscribers to Sky’s TV platform in the U.K. and Ireland (IRISH TIMES, 1/26). BROADBAND TV NEWS' Jörn Krieger reported the dispute "could lead to Eurosport 1 HD, Eurosport 2 HD, Eurosport 360 HD and Discovery Channel being removed from the German pay-TV platform" on Feb. 1. The German market "is of particular significance to Discovery as Eurosport will show the Olympic Games exclusively" from '18 after the negotiations with public broadcasters ARD and ZDF to sublicense rights failed. Eurosport also secured an exclusive domestic Bundesliga rights package from the '17-18 season (BROADBAND TV NEWS, 1/25).
BREAK FROM SATELLITE: In London, Christopher Williams reported Sky will offer its full TV service over broadband later this year "in a break with satellite broadcasting, amid growing signs that its subscriber base is being eroded by intense competition" from BT and Netflix. The company said that it would target around 2 million U.K. homes that cannot or will not install a satellite dish with a version of its Sky Q service "delivered entirely over the internet." The move signals the start of a "long-term shift away from satellite broadcasting." Sky has "invested heavily in technology infrastructure" to allow it to stream hundreds of channels live. The service will be distinct from its "cheaper and more limited" Now TV streaming brand (TELEGRAPH, 1/26).
