Broadcaster fights to keep premium TV

BROADCASTER BSkyB has vowed to “use all available legal avenues” to challenge the regulator’s plans to force it to sell its sports and films content to rivals at regulated prices.

The satellite giant said it disagreed fundamentally with Ofcom’s approach, analysis and conclusions.

Its comments followed a third consultation document by Ofcom, which believes BSkyB has “an incentive to restrict the distribution of premium channels”.

The watchdog said BSkyB was thought to be charging high prices to competitors for its premium content.

It said that had a detrimental effect on consumers by reducing choice and constricting innovation in the pay television market. Ofcom set out proposals for pricing which it said were above the level needed to give BSkyB a reasonable return.

But BSkyB said: “In light of Ofcom’s determination to pursue its preferred outcome, we will use all available legal avenues to challenge this unwarranted intervention.”

Ofcom has already warned BSkyB that it wants it to wholesale its premium content to rivals more freely.

It believes content such as movie premieres and live top-flight sport is particularly attractive to viewers.

BSkyB holds the rights to many top sporting fixtures and all major Hollywood releases and Ofcom said the satellite broadcaster kept a stranglehold on the wholesale supply of channels with this premium content.

Ofcom said it was considering “targeted interventions” in subscription video on demand movie rights and the next FA Premier League football rights auction.

Share