Perdita
29-06-2009, 05:54
BROADCASTER BSkyB may be forced to cut the price it charges rivals for its premium sports and movie channels by 30 PER CENT.
Ofcom yesterday said it wanted to break Sky's "dominance" to allow more people to view top-flight footie and the latest films.
The regulator unveiled a new cut-price band rivals such as Virgin Media and BT Vision would be allowed to pay to show channels such as Sky Sports 1.
Sky would HAVE to sell at these prices.
Ofcom also warned it plans to intervene in the next auction of FA Premier League rights in 2012 to ensure as many armchair fans as possible get to watch live games.
It said: "We believe Sky is acting on an incentive to limit the distribution of this content to rivals."
The proposals triggered a fierce response from Sky - 39.1 per cent owned by Sun parent NewsCorp.
Chief executive Jeremy Darroch vowed to challenge Ofcom using "all available legal avenues".
He said: "We want our premium channels to be widely available on other platforms.
"But we deserve a fair return on the investments which create so much value for other distributors and their customers.
"Forcing Sky to sell its channels for less than their true value is a subsidy for companies that have shown no appetite for investment in programmes."
The move comes just days after the collapse of Irish broadcaster Setanta.
ESPN picked up its Premiership TV rights. Virgin and BT are not thought to have entered the bidding.
Sky has nearly 10million subscribers. Virgin Media has less than 4million and BT Vision has 400,000.
BT retail boss Gavin Patterson said: "Prices have been too high for too long. This could change if Ofcom breaks Sky's stranglehold."
Virgin Media chief Neil Berkett said: "We're pleased the issue is getting careful scrutiny." Ofcom's proposals will go out to consultation.
Ofcom yesterday said it wanted to break Sky's "dominance" to allow more people to view top-flight footie and the latest films.
The regulator unveiled a new cut-price band rivals such as Virgin Media and BT Vision would be allowed to pay to show channels such as Sky Sports 1.
Sky would HAVE to sell at these prices.
Ofcom also warned it plans to intervene in the next auction of FA Premier League rights in 2012 to ensure as many armchair fans as possible get to watch live games.
It said: "We believe Sky is acting on an incentive to limit the distribution of this content to rivals."
The proposals triggered a fierce response from Sky - 39.1 per cent owned by Sun parent NewsCorp.
Chief executive Jeremy Darroch vowed to challenge Ofcom using "all available legal avenues".
He said: "We want our premium channels to be widely available on other platforms.
"But we deserve a fair return on the investments which create so much value for other distributors and their customers.
"Forcing Sky to sell its channels for less than their true value is a subsidy for companies that have shown no appetite for investment in programmes."
The move comes just days after the collapse of Irish broadcaster Setanta.
ESPN picked up its Premiership TV rights. Virgin and BT are not thought to have entered the bidding.
Sky has nearly 10million subscribers. Virgin Media has less than 4million and BT Vision has 400,000.
BT retail boss Gavin Patterson said: "Prices have been too high for too long. This could change if Ofcom breaks Sky's stranglehold."
Virgin Media chief Neil Berkett said: "We're pleased the issue is getting careful scrutiny." Ofcom's proposals will go out to consultation.