Flextech channels may go free in Sky row
Sky is involved in a clash with Flextech, the programming arm of cable TV operator NTL, which could see well-known channels such as Living, Bravo and Trouble dropped from Sky's subscription offer and go free-to-air.
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 threatening to make the channels free-to-air, even though subscription currently makes up 40% of its revenue.
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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.
Flextech has a limited presence on Freeview and has preferred the subscription model. However, as capacity becomes available, Flextech could move them onto Freeview.
Channel 4 has shown its faith in the free-to-air model by moving E4 and Film4 onto Freeview. NTL has plans to drive revenue for its content through a quadruple play offering under Virgin Media.
A Sky spokesman said: "We negotiate agreements with channels all the time and they take place in private. Discussions are ongoing."
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