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Internet TV firms to get cut-price Sky Sports

By Barry Collins

Posted on 31 Mar 2010 at 09:07

Sky has been forced to reduce the price it charges rival broadcasters for its Sky Sports channels, paving the way for cheaper internet television services.

Regulator Ofcom is ordering Sky to reduce the wholesale prices of the sport channels by almost a quarter, following a three-year inquiry into the pay TV market. Sky must offer Sky Sports 1 and 2 to rival broadcasters for £10.63 each, or £17.14 for the pair.

The ruling means that IPTV providers, such as BT Vision, will be able to offer the Sky channels at a discount. "We will at last be able to sell two premium sports channels," said Gavin Patterson, CEO of BT Retail. "We aim to offer Sky Sports 1 and 2 at lower prices than those which have been available. We hope to bring them to the market in time for the new Premiership football season but that will depend on Sky now complying with Ofcom’s decision."

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However, BT says Ofcom's ruling doesn't go far enough. "Ofcom should have gone much further than it did," Patterson added. "They have dropped movie channels, which should have been included. They should have included all Sky Sports channels, not just two. The wholesale price for the two sports channels is higher than the regulator had previously suggested. Ofcom has not set a regulated price for HD channels."

Ofcom's intervention could help breathe new life into BT's IPTV service. BT Vision has fallen well short of the company's initial lofty sales targets, in part because it's premium sports coverage has either relied on the now-failed Setanta or delayed coverage of Premiership football matches.

Sky has reacted furiously to the price controls, labelling the move an "unwarranted intervention" in a " marketplace where customers are well served with high levels of choice and innovation".

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User comments

Sky gripes

Rich as it is to hear BT whining about competitors selling products artificially high and using a monopoly to hold back change, I have to agree that Sky rate as one of the most irritating monopolies out there.

This does all beg a couple of simple questions.

1. Is it not time for an entirely new rival Satellite platform on a different orbit to Astra but opffering the full depth of viewing.

2. Why oh why cant ITV, BBC, Channel 4, Virgin, BT and perhaps RTE and whats left of Setanta all bond together and form a purchasing collective, and outbid Sky for almost everything, but at the very least for Football and films etc.

Sky need to be whipped back into line, they've had it their own way far too long.

Look at their latest Scam of gradually turning down the quality of Standard Def viewing to try to force every subscriber onto Hi Def and its ridiculous pricing plan.

By Gindylow on 31 Mar 2010

Ofcom failing to the grasp the nettle yet again. That's 2 for 2 this week.

How do we go about impressing upon their Lords and Masters that the regulator just isn't fit for purpose?

By rozman on 31 Mar 2010

Please correct me if im wrong, but what has this got to do with Ofcom.

So Sky, bid, and won for the rights to broadcast the sport. The other companies were involved, but got out bid.

Sky then sell on the rights for the others to broadcast their paid for content. Surely that is there right as the copyright holders.

If i where Sky, i would pull the plug on all 3rd parties showing their content. Im sure there is some law somewhere that will stop that happening.

Besides, aren't some of Ofcom's directors on the BT payrole as well!!!!

By andy_fogg on 31 Mar 2010

sky pay way to much for programme rights and as a result charge over the top to reclaim the money...

the wholesale price should have been much lower...the wholesale price is more than the consumer price should have been

By kingct on 1 Apr 2010

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