The Association of Licensed Multiple Retailers (ALMR) has said it’s “disappointed” by Sky’s “unsustainable” 5% price rise for commercial subscribers from 1 August, which the trade body says would cost up to £15m across the industry.
ALMR strategic affairs director Kate Nicholls said the increase means pubs will have to sell c385 extra pints of Carling per year to cover the cost, and the core service for pubs, Premiership Football, will remain unchanged.
Nicholls said: “It is always disappointing to see any supplier push through above inflation price increases when margins remain under pressure across the sector. The reality is that any increase in operating costs causes operators to make tough commercial decisions.
“On the eve of the World Cup - when we hope customers will get back into the habit of watching sport in the pub not at home - it is disappointing that price will be a deciding factor for many.
“Across the sector as a whole, the extra cost could be as much as £15 million, diverting investment away from licensed hospitality’s ability to deliver jobs and growth in local economies across the UK. “What we need to avoid is a return to a period of price and rights bidding escalation by satellite television providers. Pubs provide a fantastic setting and environment in which to watch the best sporting action.
“Unsustainable price rises such as these may mean that fewer pubs will be able to continue offering the best sporting drama.”
According to research carried out by the ALMR, average Sky subscriptions across the ALMR’s membership stood at £15,000 last year and just under 40% of pubs had a subscription. When free to air events are shown, up to 90% of the pub estate expressed an intent to broadcast.
