Sky, Disney in carriage dispute

Sky and Disney are locked in ongoing negotiations over a new contract for carriage on the former's digital service.

The previous, ten-year deal - inked as Sky floated on the stock exchange in 1994 - has been temporarily extended while both sides attempt to reach a resolution. Sky is understood to be seeking a substantially reduced payment towards the kids broadcaster, which offers a portfolio of four channels either on a standalone basis or as a free bonus for subscribers to Sky's premium movie channels.

If talks are ended without resolution, Disney could be forced off Sky; however, a spokesperson insisted today that they were "confident" of striking a deal.

Such an eventuality would not be unprecedented: last year, fellow kids broadcaster Nickelodeon was dropped by cable firm Telewest for two months after failing to agree new terms.