BSkyB And NTL Strike Channel Supply Deal

BSkyB and NTL have announced a five year deal which will see Sky supply its channels to NTL’s networks and ensures that the benefits of any new developments, including pay-per-view events, will be shared by the two organisations.

“The deal will mean that carriage of Sky’s channels on NTL networks is secure for the next five years.” said Tony Ball, BSkyB’s chief executive. “We look forward to working with NTL to grow the UK’s digital TV universe as fast as possible.”

The deal contains what Tony Ball, president and chief executive of NTL, describes as “appropriate incentives” for both parties, as the supply of channels would occur under a newly developed wholesale pricing structure. NTL would make savings over the term of the contract and be able to offer more choice to its customers, while Sky will increase the penetration of its channels as well as increasing its guaranteed revenue streams.

Provided it gains the regulatory approval it is subject to, the agreement will last until September 2005. It also contains a commitment for each to offer the other any new services which are developed. These may include new channels, enhanced and interactive TV services and pay per view events, such as the pay per view Premier League football games which NTL won the broadcasting rights for earlier this year (see How The Premier League Will Cash-In On Kick-Offs). The two companies also plan to pool resources in their bid to find a way of distributing these services on both cable and DTH platforms.

BSkyB: 020 7705 3000 NTL: 01252 402 000