BSkyB eyes studio deals of feevee
One H'w'd output pact may have to go
BSkyB chief exec Tony Ball told analysts this week that the satcaster will either renegotiate the price of its six Hollywood movie contracts or drop one studio output deal entirely.
Three studio deals are up for renewal in the next 30 months. It is not known which; Warner Bros., which renewed its Sky pact at the end of last year, can be ruled out, and 20th Century Fox, owned by Rupert Murdoch, who also controls BSkyB, also is unlikely.
Low movie sub base inflates costs
The satcaster's movie channels have just under 5 million subscribers, and although that's over 40% greater than at the launch of its digital service, the low base has, in turn, massively inflated the cost of its movie contracts, which are figured on per-subscriber payments.
"We have cut as much fat out of the movie side as possible from an operational viewpoint," said Paul Taylor, general manager of Sky Movies. "The only way to drive costs down further is to address the six major studio contracts. The one caveat to all this cost-cutting is that it is still our intention to offer the best premium movie service in Britain."
