Ofcom forces Sky to slash sports channel prices
Millions of TV viewers will be able to watch top sports including Premier League football for just ?15 a month after Sky was forced to sell its channels at a lower price. Yesterday Ofcom said it will control the price the satellite company charges rival TV operators for using Sky Sports 1 and 2, a saving which should be passed on to the customer.
As part of the media regulator?s ruling, Sky?s pay TV services will be made available on digital terrestrial TV, known as Freeview, meaning viewers will not have to have cable or satellite to access top sport.
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The moves ? fiercely opposed by Sky ? will in theory offer sports fans much cheaper rates for the two channels, and could mean Premier League football games will be available in around ten million Freeview-only homes, through subscription to a particular channel.
Among the sports rights that Sky owns are live Premier League games, cricket?s Ashes as well as Rugby Super League, golf?s Ryder Cup and some Champions League football.
Last night rivals Virgin Media, BT and Top Up TV all indicated they planned to pass on the benefit of the savings to their customers.
Viewers can currently buy Sky Sports 1 as a stand-alone channel for ?26-a-month from the company?s own TV service. But at least one rival operator believes it could charge as little as ?15-20 per month.
It is unclear how Sky will react to this challenge and whether they will be forced to reduce their own prices.
But parent company BSkyB branded the moves an ?unprecedented and unwarranted intervention? and said they would stop risk taking by businesses.
Virgin Media said its customers would ?reap the benefit? of the savings. BT said it would now offer the channels for the first time and do so at a price lower than those currently available.
Top Up TV, which runs a pay TV service on Freeview, said it would also enter the market.
Consumer groups have welcomed the ruling, saying it is a ?triumph? for sports fans as they will no longer have to ?pay through the nose? for the content.
They believe the decision will
start a price war that will result in better deals and more choice for consumers.
But they have also warned that if Sky is forced to take a cut in revenues it could affect the quality of the content.
Experts have also welcomed the decision to let Sky launch its own pay TV channels on Freeview, which means viewers will not have to sign up to cable or satellite TV to watch Premier League football games.
Sky?s rivals had raised concerns that Ofcom?s decision would leave the broadcaster with room to shift Premier League games on to other channels. But the regulator said it would take further action if Sky attempted such a move.
However, Ofcom failed to set out a similarly clear future for film channels ? some of which are also provided by Sky ? and a further investigation is likely.
Last night Sky?s parent company, BSkyB, said it would challenge Ofcom?s conclusions before the Competition Appeal Tribunal.
Premier League chief executive Richard Scudamore said: ?The Premier League is at one with the rest of UK sport over Ofcom?s ill-judged and disproportionate intervention in the broadcast market.?
Philip Cullum, of Consumer Focus, said: ?We welcome Ofcom?s moves to ensure fair and effective competition, which we hope will lead to more choice, further innovation and lower prices.?
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Millions of TV viewers will be able to watch top sports including Premier League football for just ?15 a month after Sky was forced to sell its channels at a lower price. Yesterday Ofcom said it will control the price the satellite company charges rival TV operators for using Sky Sports 1 and 2, a saving which should be passed on to the customer.
As part of the media regulator?s ruling, Sky?s pay TV services will be made available on digital terrestrial TV, known as Freeview, meaning viewers will not have to have cable or satellite to access top sport.
Enlarge
Order: Ofcom told Sky that it must offer Sky Sports 1 and Sky Sports 2 to its rivals at a reduced price
The moves ? fiercely opposed by Sky ? will in theory offer sports fans much cheaper rates for the two channels, and could mean Premier League football games will be available in around ten million Freeview-only homes, through subscription to a particular channel.
Among the sports rights that Sky owns are live Premier League games, cricket?s Ashes as well as Rugby Super League, golf?s Ryder Cup and some Champions League football.
Last night rivals Virgin Media, BT and Top Up TV all indicated they planned to pass on the benefit of the savings to their customers.
Viewers can currently buy Sky Sports 1 as a stand-alone channel for ?26-a-month from the company?s own TV service. But at least one rival operator believes it could charge as little as ?15-20 per month.
It is unclear how Sky will react to this challenge and whether they will be forced to reduce their own prices.
Not giving in: Sky has vowed to challenge the Ofcom ruling in the Competition Appeal Tribunal
But parent company BSkyB branded the moves an ?unprecedented and unwarranted intervention? and said they would stop risk taking by businesses.
Virgin Media said its customers would ?reap the benefit? of the savings. BT said it would now offer the channels for the first time and do so at a price lower than those currently available.
Top Up TV, which runs a pay TV service on Freeview, said it would also enter the market.
Consumer groups have welcomed the ruling, saying it is a ?triumph? for sports fans as they will no longer have to ?pay through the nose? for the content.
They believe the decision will
start a price war that will result in better deals and more choice for consumers.
But they have also warned that if Sky is forced to take a cut in revenues it could affect the quality of the content.
Wayne Rooney is helped off the pitch at the end of last night's Champions League fixture, which was broadcast on Sky Sports 2
Experts have also welcomed the decision to let Sky launch its own pay TV channels on Freeview, which means viewers will not have to sign up to cable or satellite TV to watch Premier League football games.
Sky?s rivals had raised concerns that Ofcom?s decision would leave the broadcaster with room to shift Premier League games on to other channels. But the regulator said it would take further action if Sky attempted such a move.
However, Ofcom failed to set out a similarly clear future for film channels ? some of which are also provided by Sky ? and a further investigation is likely.
Last night Sky?s parent company, BSkyB, said it would challenge Ofcom?s conclusions before the Competition Appeal Tribunal.
Premier League chief executive Richard Scudamore said: ?The Premier League is at one with the rest of UK sport over Ofcom?s ill-judged and disproportionate intervention in the broadcast market.?
Philip Cullum, of Consumer Focus, said: ?We welcome Ofcom?s moves to ensure fair and effective competition, which we hope will lead to more choice, further innovation and lower prices.?
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