Sky re-evaluates rateable value subscription rates
Following extensive consultation with the industry, and in recognition of the diverse nature of the licensed trade, Sky has announced a new way of establishing subscription rates for its commercial customers.
The thinking behind the new mechanism is to ensure that customers receive a tailored price reflecting the value that a Sky subscription brings to their individual business.
According to Sky, reliance upon rateable value as the sole means of setting subscription rates doesn’t always reflect adequately on the different business models adopted by the television channel’s customers. For this reason, the new methodology will also take into consideration additional factors of relevance to an individual customer’s business - such as food sales or outdoor sporting areas - and will allow for certain discounts to be applied against any price increases that may result from earlier recalculations of rateable value (RV).
RV will still be used by Sky as the starting point for its price bands under its new structure, as the company believes that an independent and transparent valuation is the fairest way to provide an initial assessment of commercial premises.
Iain Holden, managing director of Sky Business, commented: “The licensed trade has gone through a number of changes over the last decade and Sky recognises that it is a more diverse industry than ever. As a result, we’ve reviewed our pricing structure to see if there was a fairer way to reflect these changes. After extensive research and consultation with the industry, we have created a structure which we believe more accurately reflects the value that Sky brings to individual premises.”
The new pricing was communicated directly to commercial subscribers this month (July) and Sky is also announcing changes to its Sky Ultimate subscription, including a free second viewing card, free HD, and exclusive Sky 3D content available at no additional subscription cost.
