Ofcom has finally published its verdict on the position of Sky in the UK pay-TV sector; after several hand wringing months, the regulator decided that the triple play provider does indeed enjoy a dominant position in the marketplace, and has suggested that provision of Sky’s premium content – blockbuster cinema exclusives and live coverage of Barclays Premier League football – ought to be distributed across rival platforms on a wholesale basis, much like BT Wholesale, the part of the BT Group that sells and leases connections to practically every ADSL broadband provider in the UK. Ofcom’s analysis is summed up in the closing statement:
“Our review of the evidence indicates that distribution of these channels is indeed limited… We propose to address our concerns by requiring Sky to wholesale designated premium channels on regulated terms.”
This will please BT and Virgin Media, who will be able to offer their customers Sky Sports 1 alongside Setanta Sports content, allowing for complete Premiership coverage.
“We are encouraged that Ofcom has recognised Sky’s dominance in the wholesale supply of its sports and movie channels and is proposing to take action compelling Sky to supply these channels to other pay TV providers in a fair and non-discriminatory way,” said a Virgin spokesmouth.
It is thought that the blow will be sweetened for Sky, who will be allowed to go ahead with their Picnic service, a sort of Freeview plus added Sky pay-per-view options with bundled broadband and phone calls, kind of like a slimline version of their hugely successful See Speak Surf package. Last month, Sky slammed shut the lid on their Picnic basket, citing Ofcom’s glacial progress on the proposal as the main reason.
It is also thought that the ruling will see Sky re-opening talks with Virgin Media, over carriage fees for the five Sky channels which were pulled from the cable platform last March, literally days after the launch of the Virgin Media ‘Quad-Play’ package in the UK.
Similar Posts: