Sky and Discovery head for court on ad sales
August 12, 2009
Sky Media and Discovery’s TV ad sales current deal expires at the end of 2009 and no renewal yet agreed, the two companies are at loggerheads over the amount of ad revenue Sky Media pays Discovery. Discovery, which is believed to be claiming up to £14m (E16.3m) in unpaid ad revenue, took Sky Media to the High Court earlier this year over a disagreement about the companies’ ad sales contract. The dispute now goes to a full hearing.
The wrangle 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.
Sources say no renewal agreement is yet in place, with Discovery thought to be openly pitching out its sales contract to rival sales houses. Discovery is understood to account for about 20% of Sky Media’s total commercial 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.”