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Regulator piles pressure on BSkyB with pay-TV market investigation

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Published Date: 21 March 2007
BSKYB came under further regulatory pressure yesterday after Ofcom, the media watchdog, announced plans to investigate the pay-TV market.
The move follows a submission to Ofcom from a group of smaller broadcasters asking it to look into the sector.

Ofcom said it had agreed to undertake an inquiry to see if the market needed to be referred to the Competition Commission.

Its inve
stigation will cover the entire pay-TV market, including subscription and video-on-demand services on cable, satellite, digital terrestrial television (Freeview) and the internet.

The decision comes weeks after a public row between Virgin Media and BSkyB saw Virgin customers lose access to several high-profile Sky channels after the two companies failed to reach an agreement over prices.

The loss of the Sky package - which includes Sky One, Sky News and Sky Sports News - sparked anger from consumer groups, including the National Consumer Council.

Ofcom also said it would be looking at Sky's intention to launch a new pay-TV service on Freeview, which would also see the same channels removed from free digital TV.

The industry regulator said that its investigation would include the possible impact that this would have on both consumers and competition in the market.

The submission for an inquiry came from BT, the Irish broadcaster Setanta, paid-for digital TV service Top Up TV and Virgin Media.



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1

Bill, Dunblane,

21/03/2007 02:30:27

Anyone who has had any dealings with Sky will know how they are totally dismissive of customer complaints.

It's a monopoly and they'll do exactly what they want, charge as much as they can, and where else can anyone go? But then again, that was the plan all along.

Can anybody guess where Bliar's next job will be?

2

Xena - Warrior Princess,

Cable Customer 21/03/2007 08:55:45

Sky has planned this all along, even offering way above market price for the programme LOST that Channel 4 could not compete. I very rarely watched Sky 1 so it seems that Virgin Media are correct when they say the percentage watching it had dwindled but Sky want double the price! Probably to get back the money they spent outdoing Channel 4. I very much resent the way Sky is a monopoly and taking the complete michael. Ofcom should come down hard, but do they have any real power?

3

Cadgers,

Perth 21/03/2007 08:58:44

#1 Hee hee Bill.

4

Jeeemy,

sunny Scotland 21/03/2007 10:17:43

Yes the chickens are comming home to roost. when Sky and B skye B were to be in competition that Thieving tyke Murdoch,from the colonies and friend to Prime Ministers and Presidents, (brown envelopes) was given the ok to the merger, so the monoply was passed and made secure (more brown envelopes)
The licence to print money was created, (M.B.E.) but as an Austrailian, he then though that He would like British nationality, he changed his mind and bought American as you do.
The tax regeme is better and with some Brown Envelopes you can definatly buy Presidents.

5

jim lad,

the capital 21/03/2007 10:54:16

If Sky were to get their way we would need Sky smart cards just to switch our tellies on. They need reined in big time in my humble opinion

6

Scaramouche2,

A Free Man!! 21/03/2007 10:55:23

I dislike Murdoch and his empire every bit as much as I dislike Branson and his!!

I have cable .... and they took my Sky One away from me!!! Who knew this was gonna happen when Virgin took over NTL/Telewest??

Mad?? I am FUMING!!! But why should I pay more?? By all means investigate this pair of scheming of scheming rich gits and their companies, force their prices down and GIVE ME ME BACK MY SKY ONE!!!

7

Moody,

21/03/2007 11:29:41

Most of Sky's channels are nothing but repeats and more repeats

Most of Sky's channels are nothing but repeats and more repeats

Most of Sky's channels are nothing but repeats and more repeats

Most of Sky's channels are nothing but repeats and more repeats

Most of Sky's channels are nothing but repeats and more repeats

8

Douglas,

Bathgate 21/03/2007 11:58:49

I'd appreciate another timely reminder on the dangers of watching ALL television (except his own)
from scottwebb. :o)
Bill in Dunblane, a few key words to use when speaking to your Sky operative: "I'd like to cancel my subscription please" You'll be connected to someone higher up the food chain in a very short time.
If all else fails we can just cancel our direct debits, no customers - no Sky. It's only the telly after all.

9

sam the god,

21/03/2007 12:48:17

i do not think it will make any difference at all they will just ignore is as always.
Welcome back Scaramouche who is running the book on how long it takes to get binned again? keep up the good work

10

Boy Wonder,

Hooray! Scaramouche is BACK!! 21/03/2007 13:16:32

I too want Sky One back. STV is a terrible channel these days. Sky One was a MAIN Channel as far as I was concerned!

#9. Maybe you should run the book. What odds are you giving??

11

Lock,

21/03/2007 15:02:21

At least you don't have to pay Sky for the priviledge of OWNING a TV. Why not refer the BBC to the Competition Commission while we are at it?

12

AD,

chilly Livingston 21/03/2007 15:37:30

#6 Scaramouche2 (welcome back!)

I'm no big fan of Richard Branson either but at least his companies operate with much more dignity and fairness.

Sky had set and agreed a price with Virgin Media, saw that they were going to get a lot of their business, backtracked and hiked the prices up by a massive percentage (can't remember exactly what it was but it was something like 80%) to Virgin Media. Virgin Media suggested to Sky that they get an independent organisation to look at the pricing structure and to set something fair and Sky basically told them to go and get raffled.

We may have lost Sky One but I know where my loyalties lie - and there's no way in hell I'm going to Sky. We dealt with them a few years ago and vowed never to go back - bunch of robbing ...........

13

ddmc,

21/03/2007 15:41:26

i have to agree with Scotwebb even tho he hasn't made an appearance on todays thread. People watch too much telly & kids are even worse. Why are people so slavish to the box ?, especially as it's full of repeats, moronic US shows & our own splurge of 'reality' shows. I understand why the TV companies love reality shows as they are the cheapest shows to make & fill up an obscene amount of TV hours. An interesting point about the cable merger, why was it never referred to OFCOM or MMC, the reason for initially granting 2 cable companies permission to carve up the UK (& destroy every furkin pavement!!) was to promote competition & keep prices down. I notice no-one mentions that Virgin media had put the prices up just after the merger, then fail to negotiate a contract with Sky. Virgin media knew for some time that the contract talks were failing, but waited for Sky to pull the channels before making any issue about it.
I think both groups are 'at it' & deserve to be heavily regulated with strict price controls, but Branson & Murdoch would rather shoot themselves than allow that to happen.


 

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