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Old 01-26-2010, 10:53 PM   #1 (permalink)
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Default Sky may be forced to cut price on movie channels

Film distributors and indie film makers are raising the alarm that Sky might be paying less for movie content if the company is forced to lower the charges it gets from Virgin Media. As you may have heard, Sky is being told to cut its charges to Virgin Media for its movie channels. This cut could be as big as 39%.
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Old 01-26-2010, 11:42 PM   #2 (permalink)
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Hmmmn... I think this is highly possible. If Sky gets smaller fees from Virgin then it will be forced to scale down the amount it pays for content.
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Old 01-28-2010, 05:03 AM   #3 (permalink)
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Right. I don't think Sky will be subsidizing content.
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Old 01-28-2010, 11:06 PM   #4 (permalink)
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I'm concerned that this would mean that the quality of films shown on Sky will also deteriorate?
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Old 01-29-2010, 06:22 AM   #5 (permalink)
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Well, that is correct. If they only could afford cheap films, then they would have more b-movies on their roster.
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Old 01-29-2010, 06:57 AM   #6 (permalink)
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This would affect indie films too much. It is they that needs the higher amount Sky could pay them to survive.
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Old 01-29-2010, 11:38 AM   #7 (permalink)
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Actually, from what I heard, Sky pays indie outfits less than it pays studios. I think indie films get only a third of a studio movie.
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Old 01-29-2010, 12:53 PM   #8 (permalink)
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Ofcom is the one to blame for this. For many times, Ofcom has given indications that it wants Sky to subsidize the whole industry. Sky is a business, people! Not a charity!
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Old 02-01-2010, 04:08 AM   #9 (permalink)
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Well, the fees they charge Virgin is GBP12.48. Sky actually earned more than GBP673 million in subscription fees for its movie channels since 2006. But that will soon change as Ofcom would want to pressure them to cut down the fees to as low as GBP7.58!
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