Flextech Channels Could Go Free-To-Air

Popular non-terrestrial channels like LivingTV, Bravo and Trouble, could go free-to-air, after reports have suggested that Sky is involved in a clash with Flextech, the programming arm of cable TV operator NTL.

Reports in the trade press say that industry insiders claim Sky plans to slash the amount of subscription revenue it gives to Flextech when a five-year transmission deal runs out in January.

In response, Flextech is said to be threatening to make the channels free-to-air, even though subscription currently makes up 40% of its revenue.

This latest news follows on from a month of increasingly fragile relations between Sky and the cable company, which is set to be rebranded as Virgin Media in the New Year (see NTL To Become Virgin Media Early Next Year).

Sources claim the deal proposed by Sky would drastically reduce the amount it pays for the cable company’s channels, although it is understood it has agreed a deal with UKTV, whose channels are jointly owned by Flextech and the BBC. NTL’s chief executive of content, Malcolm Wall, is believed to be heading negotiations.

Channel 4 moved E4 and Film4 onto Freeview earlier this year (see FilmFour To Be Free-To-Air From 23 July), with successful results.

Flextech: www.flextech.co.uk