Ofcom To Review Sky’s ‘market Power’

Media industry watchdog Ofcom has launched a consultation into BSkyB’s ‘market power’ which could force the pay-TV broadcaster to decrease its prices for its sports content.

Ofcom, publishing the long-awaited findings of its review of the UK pay-TV market, said that BSkyB’s dominant position in the market means it has ‘an incentive to limit the distribution of this content to competitors, in a manner that favours its own satellite platform’.

Following the review, Ofcom has now launched a consultation body to review whether BSkyB should be forced to offer its content at more competitive prices including access to the likes of Premier League football.

The initial investigation was made after a joint complaint from BT, Setanta, Top Up TV and Virgin Media, but it has rejected calls by BSkyB’s rivals that the issue should be referred to the competition commission.

It is believed that BSkyB came close to agreeing a wholesale distribution pricing deal with Ofcom earlier in the summer but a deal could not be reached.

Ofcom’s consultation process will close on 9th December with the findings due to be published early in 2009.

For its part, Sky claims that the entry of Irish company Setanta into the British market, and the division of Premier League football rights between the two, showed that competition is alive and well in the pay-TV sector.