Overview

On 31 March 2010, the UK Office of Communications (Ofcom) published its final statement following its three-year investigation into the UK pay-TV market. Ofcom has concluded that British Sky Broadcasting (Sky), the largest UK pay-TV broadcaster and retailer, has market power in the wholesale supply of premium sports and movies channels and that it is restricting distribution of those channels to rival pay-TV retailers to the detriment of consumers. These findings are consistent with Ofcom's earlier third consultation ending in 2009.

To address the concerns regarding premium sports channels, Ofcom has imposed a "wholesale must-offer" obligation under which Sky is obliged to make its two main sports channels (Sky Sports 1 and 2) available to other pay-TV retailers at regulated prices.

Ofcom states that the new regulated prices are between 10.5 per cent and 23.4 per cent cheaper (depending on whether offered as a single channel or as a bundle) than the prices at which Sky currently supplies these channels to cable operators.

Please click to continue reading.