Tech
Another public war between a broadcaster and a platform operator is looming, this time between Sky and Viacom, the latter of which is the parent company of the MTV bouquet of channels.
Tony Ball, Sky's CEO, told reporters after unveiling the company's latest set of financial results: "We're definitely prepared to stare them down if we can't get a sensible deal."
This wouldn't be the first time a system operator chose to take on Viacom on the subject of MTV carriage. In December 2001, Britain's second largest cable operator, Telewest, took on MTV in a battle that seemed to be waged more in the media than at the negotiating table - for more, see Digital Spy's extended coverage. At that time, Telewest even went as far as transmitting messages on its cable network stating carriage of the channels may end, although the two sides eventually reached an agreement. This time, although the public nature of the dispute seems to be the same, the actual dynamics of the situation are somewhat different.
What Sky is apparently trying to do is to renegotiate its compensation package with MTV, as in how much of Sky's subscription fee goes back to MTV Networks Europe. There is no talk about MTV departing from the Sky or digital satellite platform altogether, only it being dropped from Sky's subscription packages. The distinction is important, for the Telewest situation would have seen MTV dropped from Telewest's cable platforms altogether. This is not the situation here, a fact that needs to be stressed in order to avoid the inevitable media hype about MTV being "thrown off" the digital satellite platform. Sky is mandated to carry MTV on its EPG, although one option would be for MTV to be moved to a less prominent position in the lineup. Still, that option would have little impact given the strength of the MTV brand in the UK.
The other different dynamic in this situation is Sky's plans to branch out as a broadcaster and launch three new music channels, joining the already crowded market occupied by various offerings from MTV Networks Europe and EMAP. Details of this are carried here on Digital Spy.
More details on this as it develops.
Tony Ball, Sky's CEO, told reporters after unveiling the company's latest set of financial results: "We're definitely prepared to stare them down if we can't get a sensible deal."
This wouldn't be the first time a system operator chose to take on Viacom on the subject of MTV carriage. In December 2001, Britain's second largest cable operator, Telewest, took on MTV in a battle that seemed to be waged more in the media than at the negotiating table - for more, see Digital Spy's extended coverage. At that time, Telewest even went as far as transmitting messages on its cable network stating carriage of the channels may end, although the two sides eventually reached an agreement. This time, although the public nature of the dispute seems to be the same, the actual dynamics of the situation are somewhat different.
What Sky is apparently trying to do is to renegotiate its compensation package with MTV, as in how much of Sky's subscription fee goes back to MTV Networks Europe. There is no talk about MTV departing from the Sky or digital satellite platform altogether, only it being dropped from Sky's subscription packages. The distinction is important, for the Telewest situation would have seen MTV dropped from Telewest's cable platforms altogether. This is not the situation here, a fact that needs to be stressed in order to avoid the inevitable media hype about MTV being "thrown off" the digital satellite platform. Sky is mandated to carry MTV on its EPG, although one option would be for MTV to be moved to a less prominent position in the lineup. Still, that option would have little impact given the strength of the MTV brand in the UK.
The other different dynamic in this situation is Sky's plans to branch out as a broadcaster and launch three new music channels, joining the already crowded market occupied by various offerings from MTV Networks Europe and EMAP. Details of this are carried here on Digital Spy.
More details on this as it develops.
More: Tech, Satellite TV
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