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Ofcom looks into pay TV industry | Ofcom looks into pay TV industry |
(about 2 hours 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 recently lost access to several Sky TV channels after a bruising battle during which the two failed to agree a new contract. | Virgin Media recently lost access to several Sky TV channels after a bruising battle during which the two failed to agree a new contract. |
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 television (DTT), satellite and the internet. | |
BSkyB response | |
Aspects of this market appear to be failing consumers and a thorough investigation is warranted National Consumer Council | |
BSkyB is the biggest provider of pay TV services through its satellite platform and is also considering entering the DTT market. | |
"BT, Top Up TV and Setanta all have a commercial interest in preventing Sky from increasing customer choice by developing a new pay TV service on the DTT platform," BSkyB said in a statement. | |
BSkyB also said it hoped that the investigation would look into "the physical and legal barriers and business practices that shield Virgin Media from true competition". | |
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 following the spat between the two broadcasters. | |
The NCC welcomed the inquiry saying: "Aspects of this market appear to be failing consumers and a thorough investigation is warranted." | |
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. |