Discovery has awarded a four-year deal to Sky Media, the ad sales division of BSkyB, starting from 1 January, 2010. Sky Media has been its ad sales partner since 2002.
It is believed the two sides have called off a legal dispute, which was set for the High Court next month. They had been in dispute over the amount of ad revenue Sky pays Discovery under its current contract. Discovery and BSkyB declined to comment.
It is thought the wrangle centred on a clause that allows Sky Media to cap the amount of money Discovery receives when its channels' commercial impacts reach a certain level.
With the dispute in the background, Discovery talked to several other sales houses to find a new home for its ad sales. Its search reached a stage where an outline agreement was thought to be in place with Five, although a deal had not been formally signed off.
However, in recent weeks, it is understood that Sky Media and Discovery have, according to one source, "struck a deal that is in both companies' interests".
Discovery relies on Sky for a large part of its UK subscription income. The Discovery contract is understood to account for about 15% of Sky Media's total commercial impacts.
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