ALMR calls for end to "crippling monopoly" over pub TV subs

Wednesday, 22 October 2008

The Association of Licensed Multiple Retailers (ALMR) has presented to the All Party Parliamentary Beer Group on Ofcom's inquiry into the supply of Sky into pubs.

The ALMR has called for Ofcom to put an end to Sky's "crippling monopoly" over pubs' pay TV subscriptions, and called on MPs to demonstrate their support for the pub industry by backing its plea.

According to ALMR research, Sky costs represent around 2.5% of total turnover for community pubs - the equivalent to all other normal operational costs including laundry, cleaning, glassware, telecoms and stock-taking. It is only marginally lower than utility costs of 3% of turnover.

Kate Nicholls, head of communications at ALMR, said: "The average subscription is now an incredible £15,000 per pub per year. We've calculated that a licensee effectively has to sell an extra 25,000 pints a season to pay for the cost of a Sky subscription.

"In real terms, the cost of a Sky subscription has increased by over 463% since 1996 - when Sky first became a must-have in pubs. Over the same period, the TV licence fee has increased by just 57% and the price of a pint by 61% - despite the best endeavours of the Chancellor.

"If the price of lager had risen at the same rate as Sky since 1996, we would currently be paying over £9 a pint."

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