Sky Media has sold advertising for Discovery's TV channels since 2006. But with the current deal expiring at the end of 2009 and no renewal yet agreed, the two companies are at loggerheads over the amount of ad revenue Sky Media pays Discovery.
Discovery, which is believed to be claiming up to £14m in unpaid ad revenue, took Sky Media to the High Court earlier this year over a disagreement about the companies' ad sales contract. The dispute now goes to a full hearing.
It is understood the wrangle centres on a clause that allows Sky Media to cap the amount of money Discovery receives when its channels' commercial impacts reach a certain level.
Sources say no renewal agreement is yet in place, with Discovery thought to be openly pitching out its sales contract to rival sales houses. Channel 4 and Five are both understood to have held talks with Discovery about taking over the contract.
Losing the Discovery contract would be a blow to Sky Media. Discovery is understood to account for about 20% of Sky Media's total commercial impacts.
But it is by no means certain that Discovery will leave Sky Media. "This could all be brinkmanship on both sides," said one senior TV sales source.
BSkyB declined to comment, other than to say: "This action is a means to resolve a disagreement over the interpretation of a contractual clause. We look forward to continuing our relationship with Discovery, which remains a valued part of Sky Media's channel portfolio."
Discovery, Channel 4 and Five declined to comment.
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