Ofcom to force Sky to cut sports channel prices

Ofcom is expected to force Sky to cut the price it charges rival broadcasters for its Sky Sports channels.

The regulator is having a board meeting tomorrow for an update on its pay-TV review where it is believed it will rule that Sky must lower the wholesale price it charges for its sports channels.

A formal announcement of the ruling will be made in March, just ahead of a general election.

Sky would be forced to reduce the wholesale rate of Sky Sports 1 from the current £13.481 to between £9.44 and £11.24, according to several reports.

The changes would come into effect from the start of the 2010/2011 football season, with BT pledging to offer Sky Sports 1 to its subscribers for £15 per month, down from £25.50. Sky customers also currently pay £25.50 for the channel.

Sky is expected to appeal against the ruling, which could lead to a lengthy court battle.

Ofcom launched its pay-TV review in 2007 and in initial findings published in June said Sky should make its premium channels available to other retailers on a wholesale basis, as this was “the most appropriate way of ensuring fair and effective competition”.