BT Sport has signed a £1bn deal to broadcast Champions League and Europa League matches for three years from 2015.
BT has agreed to pay around £299 million a season for the rights to all 350 matches in the two Uefa competitions each season.
The Champions League is currently broadcast by Sky Sports and ITV.
In a statement, Sky said: "We bid with a clear view of what the rights are worth to us. It seems BT chose to pay far in excess of our valuation.
"There are many ways in which we can invest in our service for customers. We take a disciplined approach and there is always a level at which we will choose to focus on something else. If we thought it was worth more, we'd have paid more.
"Nothing changes until 2015 and we look forward to 18 more months of live Champions League on Sky Sports.
"We will now redeploy resources and continue to bring customers the best choice of TV across our offering."
Telecommunications company BT launched two sports channels on August 1 this year.
Gavin Patterson, BT chief executive, said: "I am thrilled that BT Sport will be the only place where fans can enjoy all the live action from the Uefa Champions League and Uefa Europa League.
"Both tournaments are world class and firm favourites with many."
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