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BSkyB re-secures MTV Networks for UK -
BSkyB re-secures MTV Networks for UK
Sunday, 15 November 2009 06:16
There hasn’t been much doubt that MTV would reconfirm its carriage agreement with pay-TV giant BSkyB. All of the MTV networks are covered, including the Nickelodeon and Comedy Central brands. What wasn’t expected was that Viacom, MTV’s owner, would hand over responsibility for ad-sales to Sky’s media sales arm.
Viacom had previously used its own sales division, Viacom Brand Solutions, to handle its on-air sales efforts. The shift to BSkyB now gives Sky about 17% of the UK television market. MTV’s ad-revenues are said to be worth about £375m over a five-year period. A growing ad-market could see this revenue increase nicely.
Mike Darcey, Sky's COO, said the deal would allow the groups to "share in the opportunities that arise from a strengthened ad sales portfolio". Sky’s greater overall importance in selling air time inevitably gives it a much stronger negotiating position with media buyers.