Sky could be forced to pay hundreds of million pounds in compensation to broadcasters after the discovery of miscalculations in its advertising sales unit.
The broadcaster has been issuing refunds to broadcasters including Warner Bros. Discovery (WBD) and Paramount.
The Daily Telegraph, which first reported the story, said sales house Sky Media had underreported revenue that should have been paid to partners from around 2017. It means that the miscalculations began at a time when Sky was still owned by News Corporation before the auction of the company that resulted in Comcast taking control a year later.
Sky Media sells advertising and sponsorship for Sky itself and several channel partners. It is one of the UK’s three major sales houses; the others are operated by ITV and Channel 4.
The sums involved have been correctly accounted for within Sky’s accounts, though the broadcaster has not drawn attention to them. A number of staff involved have subsequently left Sky Media.
A Sky Media spokesperson said: “When we became aware of an issue in relation to payments to partners, we acted decisively, conducted a thorough review process, proactively notified all partners, and are in the process of fully reimbursing them. We have made the necessary internal changes to prevent this reoccurring.”
“We have made the necessary internal changes to prevent this reoccurring.”
The miscalculations will not have come at a good time for Sky. Diplomatic relations with Warner Bros. Discovery are already at a low after Sky looks to renew a deal with WBD ahead of the UK launch of streaming service Max.
