Sky Media, the advertising sales division of Sky, is set to reimburse hundreds of millions of pounds to its partners, including Paramount and Warner Bros Discovery, after identifying a significant miscalculation in payments that originated in 2017. This costly error, which persisted even after Sky’s £30 billion acquisition by Comcast, involves underpayments for advertising space sold on channels owned by these major media corporations.
The Sunday Telegraph initially broke the story, revealing that the discrepancies had been ongoing since before Comcast’s takeover and continued thereafter. Following the discovery earlier this year, Sky Media has taken steps to address the underpayments by conducting a thorough review, notifying affected partners, and committing to full reimbursement.
This incident has prompted internal changes within Sky Media to prevent future errors and has led to some staff departures. The situation has cast a shadow over Sky’s reputation, especially compared to other top UK TV advertising vendors like Channel 4 and ITV.
In 2015, Sky Media successfully outbid Channel 4 to manage the £250 million annual ad sales for Channel 5, further solidifying its position in the market. The division has been recognized for its innovative advertising solutions, such as the localized ad targeting technology AdSmart, which was highlighted as a key factor in winning business from Viacom.
Despite the financial mishap, Sky reported advertising sales of £1.2 billion last year, contributing to a total turnover of £10.2 billion. The company has reassured that the reimbursements have been appropriately accounted for, though not explicitly detailed in public filings.
