The completion of a two-year Ofcom review of the pay television market is imminent. Ofcom is expected to order British Sky Broadcasting to sell premium content, especially Premier League football, to rivals at wholesale prices set by the regulator. These are likely to be 20 per cent to 35 per cent below current levels. The beneficiaries would include providers such as BT Vision, Virgin Media and Top-Up TV.
The completion of a two-year Ofcom review of the pay television market is imminent. Ofcom is expected to order British Sky Broadcasting to sell premium content, especially Premier League football, to rivals at wholesale prices set by the regulator. These are likely to be 20 per cent to 35 per cent below current levels. The beneficiaries would include providers such as BT Vision, Virgin Media and Top-Up TV.
BSkyB is implacably opposed to the main thrust of the review. Ofcom is to offer the broadcaster the chance to put football on Freeview. This would mean the revival of BSkyB’s 2006 plans to launch a Freeview service called Picnic, but this possibility was dismissed as a ‘sop’ by the satellite broadcaster. BSkyB have made it clear that they are contemplating take legal action against the decisions in the review.
If Ofcom’s plans are implemented, the consequences could be far-reaching. Fans should be able to access Premiership matches at lower prices. At present BSkyB’s services are available only on its own satellite service and cable television. Virgin Media, which owns the UK’s principal cable platform, takes the view that the price BSkyB charges is too high to allow a profit to be made.
In the longer run the amount of money that the Premier League earns from domestic television rights could start to decline. This money is at the heart of the Premiership model as we know it. However, given the likelihood of an appeal, do not expect any big changes in the short term.