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Ofcom decision in the Pay-TV market

Overview

It was announced on 31 March that Ofcom will require BSkyB (Sky) to offer at a wholesale level its Sky Sports 1 and 2 channels at a price determined by the regulator. This will provide a mechanism for other platform providers to gain access to Sky Sports 1 and 2 on fair and reasonable terms.

The decision will mean, subject to appeals, the wholesale price Sky charges for its two sports channels, to platforms such as Virgin Media or BT, will be reduced by around 10%.

Additionally, Ofcom is also proposing to ask the Competition Commission to consider whether there are any competition concerns in the provision of Hollywood first-run movies.

In this briefing, we examine who the decision will affect and assess its impact on the wider broadcasting community.

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