Prepare to pay up to 10% more for your Sky TV package from September. The specific costs aren't known but it looks increasingly likely the cheapest package will start from around £23.50 a month.

The news will disappoint many given the presence of competitor BT on the pay-TV block. So not much of a price war - so far.

Sky high?

Last year Sky hiked prices by 5% for sport bundles and around 7.5% for entertainment packages. The news of the increase was stuck on Sky's online shop web site. "Sky TV price will increase on 1 September 2013 by up to 10% in accordance with our standard terms," it said in a legal note at the bottom of the page.

Last week BT, having promised broadband subscribers its TV channels would be free, said it was hiking the price of its line rental saver plan by 10%, climbing from £129 a year to £141. With BT you can watch Premier League for free (though BT can't match Sky for sport output: cricket, golf, etc; Sky shows around three times as many Premier League games).

Shares in broadband players have come under pressure recently on fears that new competition would eat into profits. But it's still expected Sky will shortly slash prices for its broadband packages (though there is little detail currently) in an attempt to keep up the pressure on BTSport.

Package changes

"Many sports fans have broadband through us and their TV through Sky," said Peter Oliver, commercial director for BT Consumer, quoted in the Telegraph. "Our channels will be free for those households, so we'd be happy seeing their monthly bills reduced by Sky."

Oliver added: "We think Sky customers are grossly overcharged and welcome any cuts they make to their package."

Sky charges consumers almost £620 a year - including the price of line rental - for complete access to all its sports channels, plus 2GB of downloads a month. For the moment, it look like Virgin Media is keeping out of the fray though it's thought Virgin is interested in offering BTSport content.



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