Sky’s the limit
BT customers can scoop Sky Sports 1 and 2 for £16.99 a month, undercutting Sky's subscription price, but inflated wholesale costs from BSkyB could hit BT hard.
In good news for football fans, BT Vision customers can add Sky Sports 1 or 2 for £11.99 on a month-by-month contract. Customers willing to commit to a broadband and calls bundle for two years can snap up a ‘total sports package' starting at £6.99 for Sky Sports 1, ESPN and ‘on demand' sport from BT Vision at £11.99 for Sky Sports 1 and 2 plus ESPN.
BT says this bundle is £205 cheaper than Sky's equivalent deal and £281 cheaper than Virgin Media over a year.
A more competitive market, breaking up Sky's sports monopoly of events like the Champion's League and test cricket was forced on the broadcaster by Ofcom, which insisted Sky wholesale its sports channels at regulated prices to BT.
However, apparently disgruntled BSkyB has hit back with plans to hike its subscription price to the public, which in turn will make it more expensive for its rivals, like BT, to provide Sky Sports. Consequently, BT is expected to make a loss for each customer it provides its cut-price sports package to if it has to fork out more for broadcasting rights to Sky.
From 1 September, the cost of Sky's basic subscription plus sports package will rise from £26 to £29 per month. Sky says the lowest price for Sky Sports 1,2,3 and 4 will increase by £3 to £38, while its top package ‘6 pack' will increase to £51 from £48.50.
Bowing to pressure from Ofcom, Sky cut the wholesale price of its channels by 20 percent. However outmanoeuvring Ofcom's aim and in a bitter blow to its rivals, Sky has taken the surprise decision to raise the price of its subscription for its customers and therefore is able to boost its wholesale prices too, damaging its rival's prospects of making a profit from selling Sky's wares.
It is rumoured BT expected Sky to drop its subscription prices to compete with its low-cost offering and BT may now make a loss for providing Sky Sports 1 and 2 to its customers.
In a statement, BT said: "It's surprising that Sky are raising prices for their customers just when we're about to enter the market. This will only make our prices more attractive and so could drive customers to our door. We are proceeding as planned and will deal with the issue of Sky's wholesale pricing in due course."
