Well, we said there might be a fight looming, and BskyB's boss has thrown the first punch. Unlike most channels who broadcast via Sky, who have to pay to do so, the opposite is true when it comes to MTV. As one of the first quality channels available via satellite, MTV's parent company Viacom has a deal with the Sky network where it actually gets a share of Sky subscription income in return for supplying its MTV channels (as well as Nickelodeon and Paramount Comedy). But contracts are now up for renewal, just as Sky is finalising the launch of its own network of music channels, and bosses at the satellite company are planning on using their own moves into music television to cut the fees they pay to MTV - some reckon they want to half what they currently pay.
BSkyB chief Tony Ball told reporters this weekend: "We're definitely prepared to stare them down if we can't get a sensible deal." Ball plans to use the recent boom in subscribers to rewrite past deals. "When these deals got cut four or five years ago the wisdom at the time was that Sky would have around 4.5 million customers by now. We're at 6.6 million and that means the channels have had a pretty good deal, coupled with greater ad revenue. So as we approach renegotiation we're keen to redress the balance.” He added that the channels covered by the deal take most of their content from American versions of their channels and as such they have been getting an "easy ride" while not delivering the required audiences
Sky's powers are limited. The licence they have from the government would force them to give MTV broadcast space, and would even force them to include those channels on their electronic programme guide. But they could relegate the stations services to the back of said guide, giving the EMAP and Sky music channels a higher profile. That, combined with a loss in their share of Sky subscriptions, could be disastrous for MTV's operations in the UK
No word yet on what Viacom's approach will be – though chairman Sumner Redstone said last November that BSkyB was in danger of becoming an all-powerful "digital gatekeeper".