Cheap domestic Sky plan 'slap in the face' for pubs

A regulatory decision to force pay-TV channels such as Sky to slash prices for domestic users only, has been described as a 'slap in the face' for the pub trade

Today's announcement by regulator OFCOM will require satellite broadcaster Sky to make Sky Sports 1 and 2 available to cable competitors such as Virgin Media at 23.4% lower than it currently charges.

But the exclusion of commercial use in the proposal means many hard-up consumers may choose to watch football matches at home instead of going to the pub.

The Association of Licensed Multiple Retailers (ALMR) has described the decision to open up pay-TV to the benefit of domestic but not commercial customers as a “slap in the face” for the pub trade.

In a statement the ALMR said: "Today's ruling means that Sky will be forced to compete at a domestic level, but we hope that it will not turn its back on its commercial customers.

“A domestic price war could be disastrous for pubs if customers are tempted to take out a domestic subscription.

"There is a real opportunity here for Sky to work with the trade to steal a march on its competitors. It may be counter intuitive, but a better, more attractive offering in pubs - 3D or HD across the board - could stem the flow.”

Chris Druce is an editor of BigHospitality's sister publication M&C Report.