Sky faces advertiser backlash

13 April 2012

BSKYB may have to pay advertisers up to £20m after failing to deliver the audiences it promised.

Viewing figures for some of its digital channels, led by its flagship channel Sky One, are down by as much as 15%, according to industry sources. And among groups crucial for advertisers, such as younger people, the picture is even worse.

Advertisers usually buy airtime on an annual basis and the price paid is partly based on the size of audience the broadcaster promises to deliver. Sky is keen to boost its advertising income, which accounts for less than a tenth of turnover.

It recruited Dawn Airey from Five (formerly Channel 5) as head of all its non-sport channels to develop the channels.

Sky disputes the figures and says its trading position has improved significantly in the past 12 months.

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