BSkyB Signs New Five-Year Carriage Deal

BSkyB has signed a new five-year carriage deal which will allow it to continue broadcasting the 13 television channels owned by Flextech and UKTV.

The agreement ensures that the combined Flextech and UKTV portfolio of channels, which includes UK Gold, UK Style, Bravo and Living, will be available to Sky’s 5.7 million subscribers (see BSkyB Growth Beats Expectations) until the end of 2006.

BSkyB is thought to be paying 10% less for the right to broadcast the channels, which account for 20% of all viewing of basic pay channels. The cuts underline the growing negotiating power of pay-TV distributors compared with channel owners, as carriage fees make up the bulk of revenue for pay-TV channels.

BSkyB’s COO Richard Freudenstein, said: “We are delighted to announce the renewal of carriage for some of the most popular third-party channels available on Sky Digital. Long-term agreements such as these deliver significant benefits to Sky and its key content partners.

BSkyB: 020 7705 3000 www.sky.com

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