Will the Fox and Comcast bid for Sky result in price rises for Sky products? Some say yes and some say not so much. However, there is sure to be an increase in the cost of Sky services in one form or another. Those in the know believe that European TV subscribers will pay more for the service. And where does Comcast figure in this equation?
Sky Prices Will Likely Rise
This year, Sky Sports secured the rights to broadcast UK Premier League packages (BT Sports also has such rights). From 2019, BT has agreed a deal, to market the NOW TV service of Sky to BT customers (this includes Sky Sports.) This has already been agreed and will be adhered to by whoever puts in the winning bid for Sky.
Sky’s price has risen to over £24 billion and whoever buys it between Fox and Comcast will probably pass that price onto Sky customers. Not everybody agrees, however, largely because of Sky’s competitors. Sky has a good level of competition, although it is still regarded as the Number 1 commercial satellite service in the UK and Europe.
Sky News is Guaranteed for 15 Years
Sky News was under threat when Rupert Murdoch stated in November that he may close it down. This was to enable Fox to bid for Sky and clinch the deal. However, after talks with the UK government, Fox gave a guarantee that Sky News would receive funding to enable it to run for 15 years.
The UK government also insisted on the editorial independence of the News channel, and Fox also guaranteed this would be the case. So irrespective who comes out top of the bidding war for Sky, the news channel and its editorial independence will not be affected.
Fox and Comcast Bid For Sky With Disney Also Interested
The traditional movie business in the US and the UK is now shared with new companies. Among these are Amazon Prime and Netflix. The great attraction of Sky to firms such as Fox, Disney, and Comcast is that acquiring it enables the winning company to package up services to include Phone, Broadband and TV packages. Such comprehensive packages are becoming increasingly more attractive and popular.
Fox a Target for Disney And Comcast
To complicate matters even further, Fox is itself a target for both Disney and Comcast! After Fox failed in its 2014 bid for Time Warner, it was always a target for other media giants. The Murdoch empire is being further diminished by the gradual movement of printed news to online news services.
Only time will tell the outcome of the Fox – Disney – Comcast – bid for Sky. The situation has been going on for some years now. However, what does seem certain is that Sky customers will be paying more for their services once it is over. How much more is unknown, but whoever purchases Sky will be looking for a quick return on their investment.