Sky is set to announce it is freezing its prices for the forthcoming year and unveil a new online marketing promotion for licensees.
The move has been welcomed by the Association of Licensed Multiple Operators (ALMR), although chief executive, Kate Nicholls urged Sky to commit to sustainable pricing for the foreseeable future. She said the group’s research showed the average cost of an annual subscription was £15,000.
Sky also announced it was teaming up with Molson Coors to offer a free technology service for pubs which allows licensees to advertise promotions and events as well as providing a share of the revenue.
The UpLift Media scheme involves palcing 22in HD screens in outlets - one behind the bar and another in high footfall areas - advertising key drinks brands and a live sports feed.
Sky is rolling out the screens into 1,000 selected pubs, with plans to expand further beyond this year.
Initially the screens— which connect to the internet via a pub’s Wi-Fi or can use
3G connectivity — will display 12 different rotations, with the option for licensees to promote their own events and offers.
Licensees will also receive a fixed-monthly payment up to £1,200 per year dependent on outlet size and whether they are Sky and Molson Coors customers.
Nicholls said: “Sky’s commitment to freezing prices and customer support under its Go Further range is welcome news for licensees facing tightening margins in an increasingly competitive marketplace. There was concern amongst the licensed trade that customers would bear the burden of a very competitive battle to retain television rights of Premier League football and it is pleasing to see, at least in the short term, that this has not been the case.
“A price freeze will provide licensees with some degree of assurance, but we would like to see Sky match its commitment to broadcasting Premier League football for the foreseeable future with a commitment to sustainable pricing for licensees. Although Sky will be broadcasting a considerable number of Premier League fixtures, pubs and bars will have to look to their competitors for other competitions such as the UEFA Champions League and this brings increased costs.
“Research carried out by the ALMR showed that around 40% of licensed premises have a subscription, with the average annual cost across the ALMR’s membership standing at £15,000. There is clearly an appetite for enjoying live sport in the pub and this price restraint should give the sector confidence, provided they are not footing the bill for an expensive broadcasting package in the long term.”
