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Ofcom looks into pay TV industry | Ofcom looks into pay TV industry |
(20 minutes later) | |
The media regulator Ofcom is to launch an investigation into the pay TV industry following a submission from a group including Virgin Media. | The media regulator Ofcom is to launch an investigation into the pay TV industry following a submission from a group including Virgin Media. |
Virgin Media has recently had a bruising battle with BSkyB after failing to agree on a price to carry the basic Sky channels. | Virgin Media has recently had a bruising battle with BSkyB after failing to agree on a price to carry the basic Sky channels. |
The National Consumer Council (NCC) said the dispute was bad for customers. | The National Consumer Council (NCC) said the dispute was bad for customers. |
The group of BT, Setanta, Top Up TV and Virgin Media wants Ofcom to refer the industry to the Competition Commission. | The group of BT, Setanta, Top Up TV and Virgin Media wants Ofcom to refer the industry to the Competition Commission. |
Ofcom's investigation will include subscription and on-demand services across cable, digital terrestrial, satellite and the internet. | Ofcom's investigation will include subscription and on-demand services across cable, digital terrestrial, satellite and the internet. |
BSkyB is the biggest provider of pay TV services through its satellite platform and is also considering entering the digital terrestrial market. | |
Super-complaints | |
The 3.3 million subscribers who receive cable television from Virgin Media - formerly known as NTL:Telewest - have been unable to watch Sky channels such as Sky One since the beginning of March. | |
The NCC said at the time that it was considering lodging a super-complaint to the regulator. | |
"This dispute may expose a more fundamental flaw in the digital television market, and the extent to which it is competitive for consumers," it said. | "This dispute may expose a more fundamental flaw in the digital television market, and the extent to which it is competitive for consumers," it said. |
The NCC is one of the bodies given the power by the Enterprise Act 2002 to submit super-complaints to regulators, which must then publish a reasoned response within 90 days. | |
Ofcom is already investigating BSkyB's purchase of a 17.9% stake in ITV, which effectively prevented Virgin from launching a takeover. | Ofcom is already investigating BSkyB's purchase of a 17.9% stake in ITV, which effectively prevented Virgin from launching a takeover. |