Exclusive: Sky TV customer? Why you still CAN'T cancel penalty-free if it hikes your price mid-contract

If you've got Sky TV, Sky can put your price up during your two-year contract without telling you what rises to expect before you sign up AND without letting you leave penalty-free. Thought this kind of thing was supposed to be banned? So did we. But our investigation can now reveal that Sky is exploiting a surprising gap in the new rules – leaving its TV customers in the lurch.
Hold on – haven't inflation-linked mid-contact rises been banned?
From 17 January 2025, in line with telecoms regulator Ofcom’s new rules, there are now supposed to be just two ways that broadband, mobile and pay-for TV firms can raise prices for new customers (or those renewing or upgrading):
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Spell out any future price rises upfront, in pounds and pence. BT, EE, O2, Plusnet, TalkTalk, Three, Vodafone and Virgin Media have all chosen this option – when you take out a new contract, they all now tell you exactly how much your price will go up by each year.
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Tell you that prices may rise AND give you the option to leave penalty-free if they do. Sky and Now (which Sky owns) have gone for this option for their broadband and landline services. At a first glance, Sky appears to have chosen this option for TV as well – for example, go to Sky's website to sign up for a TV plan and you'll see something like this:

There's nothing obviously wrong with this – but dig into the small print and there is an issue specifically for Sky TV customers...
Sky's TV contracts DON'T let you cancel penalty-free if it hikes prices
Sky offers TV services in different ways – typically, this is either:
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Via satellite. The most popular of these is Sky Q, but there are other older ones as well. If your Sky package relies on a satellite dish then you'll be on one of these. You'll also have a digital box with its own remote, possibly with a 'Q' on it.
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Via the internet. This includes Sky Stream, which is now the default way to get Sky TV for newbies, and Sky Glass. Neither of these require a satellite dish. Sky Stream comes with a smaller digital box, while Sky Glass is its own TV set.
Whether you have Sky Q, Sky Stream or Sky Glass, you CAN'T cancel due to mid-contract price rises. That's because all of Sky TV's current contracts have similar provisions that say:
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Your monthly price may rise during your minimum term – though not in the first 60 days and by no more than 10% or inflation each year (whichever is higher); AND
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You CAN'T cancel during the minimum term because of this. (Note: Not all Sky TV services have a minimum term – you can sign up to Sky Stream on a rolling monthly basis, for example. However, this is more expensive and is not the default option on Sky's site.)
The contracts do give you the right to cancel in some other limited circumstances – for example, if Sky were to remove basic channels or features from your package (or otherwise downgrade your service in a major way).
It comes as Sky has announced average price rises of 6.2% for broadband and TV customers this spring – see our April bill rises story for full info.
Why Sky Stream and Sky Glass aren't covered by Ofcom's rules
Ofcom's rules seem to say one thing while Sky's TV contacts say another. What's going on here? This is technical, but stick with us.
The regulator's ability to set conditions on providers around price rises, contracts and your right to leave penalty-free comes from its legal powers to regulate "electronic communications services" (as set out in the Communications Act 2003). Under this Act:
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Broadband, landline and mobile services are specifically included. This means all of Ofcom's rules on price rises apply straightforwardly to these services.
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Online streaming services are excluded. These "content services" give you access to shows, films and other content through the internet – think Netflix, Amazon Prime Video, Disney+ and so on. These aren't regulated as "communications services", so NONE of Ofcom's rules about price rises apply.
And here's the kicker: as Sky Stream and Sky Glass also only work through the internet, they're considered to be content services – so they're simply NOT covered by the rules on price rises. -
Other pay-for TV, such as satellite TV, isn't explicitly mentioned either way. This makes the situation more complex and has opened the door to a legal dispute between Sky and Ofcom...
A legal spat means Sky Q customers aren't protected either
The difficulty with Sky's satellite TV services is that they don't JUST provide content – they also involve the transmission of satellite signals. As a result, it's not clear whether they should be regulated as telecoms services or content services. Ofcom thinks they should be regulated as telecoms, while Sky disagrees.
This has led to an ongoing legal dispute, which arose when Ofcom tried to enforce its requirement for providers to send end-of-contract notifications and Sky refused. In a judgment on 15 November 2023, the Competition Appeal Tribunal sided with Ofcom. Since then, there have been other hearings which Sky has also lost, most recently in December 2024.
However, we understand Sky is still looking to appeal, so it remains an open question. The provider did not comment further when we put the issues in this article to it.
In the meantime, the reality for customers is that Sky's TV contracts simply don't let you leave penalty-free due to price rises. We think this is unfair, and potentially breaches other consumer protection laws, so we'll be passing on our findings to the Competition and Markets Authority (which should have the power to investigate as its remit is broader than Ofcom's).
What to try if you're unhappy about a Sky TV price rise
You still have some options:
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Still within your minimum term? Check if you can change your package to reduce the cost. Depending on the products and services you have, and your exact terms, you may be able to switch to something cheaper. To check what your options are, contact Sky.
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Contract nearly up? Think carefully before recommitting. It's often easy to sign up for another 18 to 24 months – leaving you exposed to mid-contract price hikes with no right to exit early. So make sure you also check out other digital TV options.
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Outside your minimum contract term (or on a rolling monthly contract)? You can cancel penalty-free. As you're not tied in, you have more bargaining power – see our Haggling tips for help negotiating a good deal. Alternatively, you can cancel by giving Sky a month's notice.