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Discovery in carriage dispute with Sky

Discovery Communications Inc. is threatening to pull its channels from Sky plc's platform if the companies fail to reach a new carriage deal, Variety reported.

Discovery reportedly claims that the British pay-TV operator is paying Discovery less than what it was paying 10 years ago even though Discovery has increased its share of viewing on the platform by more than 20%. Moreover, Discovery has added new channels to its portfolio, including Eurosport (UK), TLC (UK) and Investigation Discovery (UK), increasing investment in its original content by more than 30% over the past seven years. Discovery also blamed Sky for using its dominant market position for commercial reasons, according to the Jan. 25 report.

A Sky spokesperson reportedly responded by alleging that Discovery's price expectations are "completely unrealistic," with many of Discovery's channels being linear-only with falling viewership. The spokesperson added that Sky will not be renewing the contract on the terms that Discovery is offering currently and, instead, will go with investing in other content.