Both Create & Craft and sister service Craft Extra have abruptly dropped off Sky, as the shopping broadcaster’s fate hangs in the balance.
- Create & Craft stopped taking orders from customers earlier this month.
- Failure to keep hold of its Sky channel slots is bad news for attempts to keep business afloat.
- Recorded output still showing on other digital TV platforms.
Sky pulled the plug on shopping channel Create & Craft and is sister channel Craft Extra on Monday afternoon, after weeks of speculation about the health of its owner Hochanda Global.
Numerous customers have complained that orders made up to six weeks ago have not been fulfilled. Suppliers began withdrawing from Create & Craft in September after failing to receive payments.
The Oundle-based teleshopping service stopped taking orders from customers at the beginning of October. Communication at the time implied the issue would only be temporary. However, its website was taken offline over the weekend.
Then, at around 3pm on Monday, Sky channel 673 (Create and Craft HD) and 680 (Create Extra) were delisted. The Create & Craft channel remains on-air with repeats on other digital TV platforms, including Freeview and Freesat.
The delisting of its channels from Sky may make it harder for the channel to bounce back, or be sold to a potential supplier. That’s bad news for customers who bought items in the days running up to the suspension of sales.
Worst case scenario: Customers back of the queue for refunds
Hochanda Global appointed an insolvency practioner on 4th October to oversee proceedings that could result in full administration or liquidation of the company. Should this occur, the Administrator will attempt to retrieve any remaining assets from the company. However, that’s likely to be bad news for regular customers awaiting their money back as suppliers, banks and HMRC will be first in the queue to receive any money. In the meantime, customers can attempt to dispute any card transactions with their bank.
Why losing Sky slots is bad news
On platforms including Freeview and Sky (and from next year Freely), channel slots can be traded and sold, making them one of the most lucrative assets remaining for a struggling broadcaster to generate cash flow. Once into administration, the Administrator will generally seek to monetise the channel slots before they are permanently lost.
Sky has among the strictest requirements for the retention of a slot on its channel list. Should a channel cease broadcasting or suffer technical issuses, it will be suspended within hours.
In an effort to prevent this, Create & Craft has been showing a loop of repeated programmes with an on-screen banner advising viewers not to call or place orders.
Sky’s channel listing rules require shopping channels to broadcast at least six hours of non-repeating programmes to retain their slot. Channels are also contractually restricted from making certain comments regarding any lack of availability of a regular service on Sky’s TV platform. They must also seek clearance from Sky regarding closure or change announcements. Importantly, all broadcasters must keep up with payments to Sky.
A channel can be suspended from Sky for up to one month before the listing is completely lost, meaning Hochanda, or any potential Administrator will have until 21st November to save the two channel slots.
At present, Create & Craft’s satellite feed, which supplies both Sky and Freesat, is still on-air, which would make a restoration of service to retain the slots easier. It’s understood Arqiva are responsible for the uplink to satellite.
By: Marc Thornham | Image: Create & Craft screengrab