Sky and Discovery go to court over ads
November 13, 2008
Discovery has taken BSkyB to the High Court over a disagreement about the companies’ advertising sales contract.Sky Media has sold advertising for Discovery’s TV channels since 2006. The current deal expires at the end of 2009.
It is understood that the dispute centres on a clause that allows Sky Media to cap the amount of money Discovery receives when its channels’ commercial impacts reach a certain level. This issue has become more pressing given that Discovery plans next year to launch its first channel on Freeview. The move is expected to significantly increase the amount of commercial impacts Discovery’s portfolio attracts. However, it is understood that, under the current advertising sales contract, Discovery would struggle to reap the maximum benefit from its extra impacts.
BSkyB said: “This action is a means to resolve a disagreement over the interpretation of a contractual clause. We look forward to continuing our relationship with Discovery, which remains a valued part of Sky Media’s channel portfolio.”