BSkyB To Face ITC Price Enquiry

The Independent Television Commission (ITC) is to carry out an inquiry into the way BSkyB charges for its premium sports and movie channels.

Currently, BSkyB’s premium channels are provided at an expensive rate for the first channel supplied, with subsequent channels in the genre offered for just a slight increment in price. For example, the satellite broadcaster charges £20.99 for its Sky Sports One or Three, but only £24.99 for all of its sports channels. Other channels such as Film Four and The Disney Channel charge about half this price for their first premium channels.

The ITC is concerned that Sky’s tariff is pricing other suppliers out of the market. The regulator will this month invite interested parties to comment on whether they feel that such deep-discounting of subsequent premium channels purchsed after the initial one has any anti-competitive elements.

An ITC spokesperson refused to hypothesize on what action might be taken should BSkyB’s pricing strategy be found to be anti-competitive, but a conclusion is expected within the next month.

Reports also suggest that BSkyB is revising its wholesale rate card for the second time in the last few months (see Newsline).

BSkyB: 0171 705 3200 ITC: 0171 255 3000