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Subscribtion or FTA

happygoluckyboyhappygoluckyboy Posts: 34
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What determines whether or not a channel is part of a sky subscription package or FTA.

My understanding that the channel broadcasters don't get revenue from the subscriptions paid to Sky. E.G Smash Hits don't get revenue based on the music package subscriptions, only though their own advertising revenue.

If this is the case, why are some music channels like Chart Show TV FTA? Surely Sky would want all music channels as subscription only, to encourage more subscribers. And on the other hand, I'd have though the actual channels would prefer to be FTA as this would mean they get more viewers?

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    Chasing ShadowsChasing Shadows Posts: 3,096
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    Your understanding is wrong.

    Subscription channels all receive some revenue from the subscribers who pay for the mix that contains the channel in question. It is only a small percentage of the subscription, but it is there. That is why ITV2/3/4 HD aren't available on any platform except for the Sky HD Pack - because the money they receive from Sky for being part of a pay-mix contributes to their existence.
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    happygoluckyboyhappygoluckyboy Posts: 34
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    That's interesting to know! I'm guessing that means the revenue they are paid from the sub fees out weighs any additional revenue they would receive through the extra viewers being FTA would bring. So does each channel get to decide whether they are sub or FTA, or does Sky decide this for them?
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    foxlafoxla Posts: 1,255
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    Indeed all the subscriptrion channels get their share of what you pay, if they didn't, then it would not be long beofre they folded, it is your money that is keeping them going
    :)

    If they are FTA they need deep pockets
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    davemurgatroyddavemurgatroyd Posts: 13,328
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    That's interesting to know! I'm guessing that means the revenue they are paid from the sub fees out weighs any additional revenue they would receive through the extra viewers being FTA would bring. So does each channel get to decide whether they are sub or FTA, or does Sky decide this for them?

    Sky decide whether they want a channel as part of their subscription packs. The broadcaster decides whether their channel will be FTA or subscription - the channels also have the option of being stand alone subscription channels such as Cinemoi, Premier Sports and a few others but they would then have to run their own call centres and subscription collection systems.
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    Nigel GoodwinNigel Goodwin Posts: 58,531
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    That is why ITV2/3/4 HD aren't available on any platform except for the Sky HD Pack - because the money they receive from Sky for being part of a pay-mix contributes to their existence.

    To be more explicit, those channels were specifically created solely as subscription channels - as an effort by ITV to generate some revenue.

    There was never any intention of them going FTA or FTV, they are there simply to raise money.
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    ds_readerds_reader Posts: 10,353
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    Channels now have the option of joining Real Digital TV and receive subscription revenue from that source.
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    Nigel GoodwinNigel Goodwin Posts: 58,531
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    ds_reader wrote: »
    Channels now have the option of joining Real Digital TV and receive subscription revenue from that source.

    Do you believe in fairies as well? :p
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    ds_readerds_reader Posts: 10,353
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    Do you believe in fairies as well? :p

    Yes they live at the bottom of my garden!
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    romdutromdut Posts: 53
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    For me FTA simply as its free (just how i like things ;) and there is a good mix of channels to watch not only on freeview but freesat also. After all why fork out for extra if you dont have to
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    cnbcwatchercnbcwatcher Posts: 56,681
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    romdut wrote: »
    For me FTA simply as its free (just how i like things ;) and there is a good mix of channels to watch not only on freeview but freesat also. After all why fork out for extra if you dont have to

    I think Freeview and Freesat or a generic FTA box (or even a Sky box without a sub ;)) gives you the best of free TV as Freeview gives you the channels that are pay on satellite.
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