FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of February 2007
26 February 2007
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
EXHIBIT INDEX
Exhibit
EXHIBIT NO.1 Press release of British Sky Broadcasting Group plc
announcing 'Sky basic channels carriage' released on
26 February 2007
British Sky Broadcasting Group plc
Sky basic channels carriage on Virgin Media
As has been widely reported, Sky is currently in discussions with Virgin Media
about the carriage of Sky basic channels(1).
The Company wishes that the Sky basic channels that Virgin Media currently
carries, including Sky One, Sky Two, Sky Sports News and the award-winning Sky
News, remain available to Virgin Media customers and has negotiated in good
faith with Virgin Media and shown flexibility on price. More has been offered to
Virgin Media than ever before, including HD services and new channels such as
Sky Three and Sky Arts, the UK's only dedicated arts channel.
Sky has increased investment in its basic channels by 68% over the last five
years to around GBP200m per annum and, as a consequence, the most watched pay TV
programmes in cable households are on the Sky basic channels. We are simply
seeking a fair price so that we can continue to provide the great shows and
choice that Virgin Media customers value.
Despite the constructive approach adopted by Sky throughout these negotiations,
the recent behaviour of Virgin Media appears at odds with a genuine desire to
conclude a commercial agreement and at this time there exists the real
possibility that agreement will not be reached before expiry of the current
contract at midnight on 28th February, 2007.
Unlike the open satellite platform, Virgin Media's cable network is closed. The
only way Sky's channels can be available to cable viewers is if Virgin Media
chooses to carry them. As a consequence, Sky's basic channels would become
unavailable to all Virgin Media customers for an indeterminate period of time.
Sky receives revenue in relation to the carriage of its basic channels on Virgin
Media's cable network, both directly from Virgin Media in the form of monthly
carriage fees and, indirectly, via advertising on those channels which are
viewed within Virgin Media households. The Company estimates that the financial
impact on Sky, were an agreement not to be concluded in relation to the
remainder of the year to 30 June 2007, would be a reduction of GBP15 to GBP20
million of operating profit. This reflects the impact of lower wholesale
carriage fees and lower advertising revenues. It does not include any of the
future benefits or costs associated with accelerated customer growth should
cable customers decide to switch to Sky. This would include subscriber
acquisition costs and any revenues received either through on-going
subscriptions or one-off installation and equipment costs.
Sky continues to be willing to negotiate with Virgin Media in good faith at any
time.
Jeremy Darroch, CFO said:
"We are disappointed that Virgin Media appear to have walked away from
negotiations. Sky offered more channels to Virgin Media than ever before. We
have invested in developing our channel offering and sought a fair price which
reflects that fact. With three days still to go before the deadline, we hope
that Virgin Media will focus on getting a deal done rather than on their PR
offensive."
For further information, please contact:
Analysts/Investors:
Andrew Griffith Tel: 020 7705 3118
Robert Kingston Tel: 020 7705 3726
E-mail: investor-relations@bskyb.com
Press:
Matthew Anderson Tel: 020 7705 3267
Stephen Gaynor Tel: 020 7705 3446
E-mail: corporate.communications@bskyb.com
Finsbury:
Alice Macandrew Tel: 020 7251 3801
Notes
1. Virgin Media currently carries Sky One, Sky Two, Sky News, Sky Sports News,
Sky Travel and Sky Travel Extra. In addition, Sky has offered carriage Sky
Arts (formerly Artsworld), Sky Three, Sky Travel+1 and Sky Travel Shop.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 26 February 2007 By: /s/ Dave Gormley
Dave Gormley
Company Secretary