Community | March 31, 2010 | 0 comments

Ofcom orders Sky Sports price cut

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CarolineS
The media regulator Ofcom today ordered BSkyB to reduce the amount it charges rivals to offer Sky Sports by more than 20%.

BSkyB must reduce the wholesale price at which it sells Sky Sports 1 and Sky Sports 2 to rivals such as Virgin Media and BT by 23.4% from the current £13.88 to £10.63 per subscriber per month. On the basis that most subscribers buy packages including the sports channels, the reduction for a bundle is 10.5% from £19.15 to £17.14.

The new wholesale pricing is effective immediately, the regulator said, and BSkyB now has six weeks from today to make a "reference offer", effectively a template contract, to other pay-TV providers. BSkyB, however, intends to apply to the Competition Appeal Tribunal for a stay on implementing the ruling.

Ofcom also said today that BSkyB is restricting the distribution of premium movie rights, with a knock-on effect for the subscription video-on-demand market, and is proposing to refer the issue to the Competition Commission.

http://www.guardian.co.uk/media/2010/mar/31/ofcom-sky-sports-price-cut
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