ITC Announces Investigation Into Premium Channel Bundling

The ITC has announced that it is to investigate the practice of premium channel bundling in the Pay-TV market. A specific complaint has been made against the Disney Channel and its terms of supply will be looked at within the investigation.

Under Section 2(2) (a) (ii) of the Broadcasting Act 1990, the ITC has a duty to discharge its functions in a manner which it considers is best calculated to ensure fair and effective competition in the provision of licensed services and services connected with them.

The ITC is familiar with a similar investigation carried out by the Office of Fair Trading into BSkyB’s position in the Pay-TV market. The focus of the ITC’s inquiry will be on the effects of bundling on competition at the retail level, with particular reference to the availability of premium channels to viewers of both cable television and direct-to-home satellite services.

Copies of the consultation document can be obtained from Sheila Cassells, Director of Finance, Independent Television Commission, Kings Worthy Court, Kings Worthy, Winchester, Hants SO23 7QA. Telephone (01962) 848675.

Submissions are requested by 10 January, 1997.