Last orders for Sky as pubs snub price hike

PUBS across the Capital are calling time on their Sky subscriptions after facing a price hike by the broadcasting giant.

A shake-up of how annual fees for the digital service are calculated for the bar industry means that today some publicans are seeing their Sky bill soar.

The broadcaster has said it will tailor subscription charges to individual bars so as to "reflect more closely the value that Sky subscription brings to their business".

It will base the levy on the business' rateable value - calculated by an independent assessor - as well as food sales and outdoor sporting areas.

Peter Swanson, landlord of Gladstone Bar in Leith, says his monthly rates for the satellite service have shot up 38 per cent from 670 to 926 in a single year - an "unaffordable" figure in the current climate, he claims.

The publican now fears rival bars will reap the rewards of his lost match-day trade, but he is refusing to pay the inflated fee for the service.

"Getting shot of it will reduce trade enormously but I have been priced out of the market," said Mr Swanson, who has co-owned the bar with his brother since 1995.

"A reasonable increase I think should be no more than 10 per cent. If I put 35 per cent on the price of a pint I would lose all my customers and have to shut up shop."

He added that his rateable value had been based on pre-recession turnover - calculated two years ago - which bore little resemblance to his current financial position. Mr Swanson, who has seen his licensing hours and capacity cut by the city council in the last two years, said he has had the "tools of (his] trade taken away" and fears for the future of his 15 staff.

An owner of several Edinburgh pubs who declined to be identified said many bar owners were shunning the hefty Sky subscriptions in favour of foreign satellite streams.

"There are a lot of foreign satellites popping up and I know of at least four very major players in the trade who have kitted out their premises with foreign broadcasting boxes because they have to pay a fraction of the subscription fee of Sky," he said.

"You could be talking paying just over 100 per month rather than 1000 which some bars are having to pay. You can understand why it's attractive."

Graham Blaikie, chairman of the Scottish Licensed Trade Association and owner of the Mercat Bar in West Maitland Street, said greater competition in the satellite market could help drive down prices.

"I know that across the board there's a lot of publicans giving up on their Sky boxes," he said.

"It's putting more pressure on us in the licensed trade and for a lot of publicans right now they do not have the money. We need to have Sky to get people through the door and if we do not have it we will lose out on revenue."

He added: "It's frustrating because we wish there would be other players in the market other than just Sky so it was a bit more competitive."

A Sky spokesman said: "Pubs and clubs make a commercial decision to invest in live sport because it brings in customers and generates revenue.

"We have held our prices for the last two years, but in light of increased investment on screen, which has led to a stronger product than ever, our prices are changing to reflect our increased production and rights costs."

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