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Broadcaster reaches interim settlement with pay-TV operators as it battles to overturn Ofcom price ruling

While BSkyB continues its legal battle against the Ofcom ruling demanding it cuts the price it charges other broadcasters to carry Sky Sports flagship channels, it has today settled a deal with three leading pay-TV operators.

And that could see BT Vision, Virgin Media and Top Up TV carrying Premier League football in time for the 2010-11 season.

The deal gives the three discounted wholesale deals for Sky Sports 1 and Sky Sports 2, and will see the broadcasters putting the difference between the reduced wholesale price and the current Sky charges to rivals in an 'escrow' account.

If Sky loses its case against Ofcom, thought likely to be heard some time in September, it will return the money; if it wins, the money goes to Sky.

The advantage is that this allows Sky to offer risk-free discounts to the broadcasters now, while of course giving their customers a taste of what the main Sky Sports channels have to offer.

More after the break

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