Ofcom’s Ruling May Force Sky To Sell Football And Films At Reduced Rates

Ofcom has released its review of the UK pay-TV market today, which says BSkyB has “market power” over Hollywood films and Premier League Football.

The regulator has launched a consultation, running to December 9, which could rule that Sky has to make its football and film content available to rival pay TV operators at more competitive prices.

Ofcom’s report said that Sky’s dominant position in the market could see the broadcaster limiting the distribution of content to competitors in order to favour its own satellite platform.

BT, Virgin Media, Setanta and Top Up TV made a joint complaint against their rival, urging Ofcom to refer Sky to the Competition Commission.

Ofcom failed to make the referral and, in addition, plans to launch a second consultation to give consent to BSkyBs’s new TV brand proposals.

Earlier this month, BSkyB delayed plans to launch three pay-TV channels on Freeview under the Picnic brand, due to Ofcom’s investigation (see Sky Delays Launch Of Picnic).

Picnic was set to replace the free to air channels on Freeview – Sky News, Sky Three and Sky Sports News – and would have included premium content such as sport and films.

However, Ofcom has attached a number of conditions to Picnic, including Sky agreeing to make the premium film and sport channels on the proposed service available to other retailers.

Ofcom: 020 7981 3040 www.ofcom.org.uk Sky: 08702 40 40 40 www.sky.com