Sky Media is telling media agencies during the first rounds of TV trading that if they don't return the share removed during its row with Virgin Media, it won't offer discounts across the rest of its portfolio.
According to a source close to Sky Media, senior sales figures at the broadcaster are taking an aggressive stance to one of the "tightest trading seasons ever". They are refusing to do business with agencies that won't return the share they removed when Sky lost carriage of its basic tier channels on Virgin Media in 2006.
A senior TV buyer said: "Due to the current climate, clients only need a certain ratings number to get a particular amount of percentage cover. The more impacts go up, the cheaper it will become. Sky is playing a tough game, but it would be naïve for agencies to trade on how Sky's channels fared a year ago on Virgin. Agencies no longer have the share they pulled from Sky Media after the spat."
ITV is also playing hardball. According to one agency TV head: "ITV has been asking to keep 100% of its money and get an extra 1% from each agency. However, Channel 4 has been less aggresive, as it has a lot of two-year deals in the market that began last year, and so is 75% dealt already."
IDS is asking agencies for 1% extra and is believed to be the main contender for growth, alongside ITV digital. Another agency's TV head cited Five as the potential loser of this year's trading rounds.
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