Pay TV phase three document - Stakeholders - Ofcom

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Event Total annual value of live rights Pay TV phase three document – non-confidential version Rights that were solely won by Sky are highlighted in dark grey. Rights that were jointly won by Sky and another bidder are highlighted in a lighter shade of grey. Note (1): Matches in the UEFA Cup prior to the quarter finals are sold by clubs and have been won by a range of broadcasters. Note (2): The value of the rights to the French Open and Australian open tennis tournaments include rights payments from Eurosport; given that this channel is broadcast across Europe, those payments may not solely relate to the right to broadcast in the UK. Sale process for the Live FAPL Rights Previous rights holder(s) Current rights holder(s) Future rights holder(s) TENNIS Wimbledon [�] BBC BBC (2005-2009) BBC (2010-2014) French Open (2) [�] BBC (2008-2011) Australian Open (2) [�] Eurosport + BBC (2008- 2011) US Open tennis [�] Eurosport + Sky (2007- 2012) Masters Cup Tennis Sky (2008-2010) Davis Cup Sky Paris Masters tennis Setanta Stella Artois tennis WTA tour ATP tour BBC (2008-2009) Event Total annual value of live rights Previous rights holder(s) Current rights holder(s) Future rights holder(s) GOLF European PGA [�] Ryder Cup Sky (2004-2008) Sky (2009-2012) World Golf Championship Sky (2009-2012) Scottish Open Sky + BBC (2004-2008) Sky + BBC (2009- 2012) US PGA Tour [�] Setanta (2007-2012) The Open [�] BBC (2007-2011) US Open [�] Sky (2005-2009) US Masters [�] BBC (2007) BBC (2008-2010) US PGA Championship Sky (2004-2006) Sky (2007-2016) European Tour Golf Sky + BBC (2004-08) Sky + BBC (2009- 2012) 5.43 The Live FAPL Rights are sold by the FAPL. Until the 2007/08 FAPL season, all the available Live FAPL Rights had been won by Sky since the early 1990s. However, in March 2006, the European Commission adopted a decision (the “Commitments Decision”) to accept binding commitments (the “Commitments”) from the FAPL concerning the sale of various media rights, including the Live FAPL Rights. 149
Pay TV phase three document – non-confidential version 5.44 The Commitments set transparency and non-discrimination conditions for the bidding process. The Commitments apply for the six seasons from 2007/08 onwards, or two rounds of bidding. The Commitments require six packages of live rights, each for 23 matches, to be made available. Each FAPL season is divided into 38 “rounds” of 10 matches. In each round, three or four matches are broadcast live. Different packages allow a first, second, third and/or fourth pick of those matches (see Figure 41 below). A first pick match is likely to be more attractive to final consumers than a fourth pick match. No one bidder is allowed to acquire all six packages and packages must be bid for on a stand-alone basis i.e. the amount bid cannot be conditional on the number of packages a bidder wins. Figure 41 The six packages of Live FAPL Rights sold in 2006 and 2009 Source: First Pay TV Consultation, Annex 10, page 22 5.45 In the 2006 the FAPL sold the rights to the 2007/08 to 2009/10 seasons. [ � ]. In light of those bids, the FAPL chose to award three packages of Live FAPL Rights to Sky (B, E and F) and to hold a second round of bidding for the remaining three packages (A, C and D). That second round was [ � ] and resulted in the FAPL awarding a fourth package of Live FAPL Rights to Sky (A) and two packages to Setanta (C and D). 5.46 In 2009, the FAPL sold the rights to the 2010/11 to 2013/14 seasons. As in 2006, [ � ]. This time, the FAPL chose to award four packages of Live FAPL Rights to Sky (A, B, E and F) after that initial round. A second round of bidding was held for the remaining two packages. [ � ]. As a result, the FAPL awarded a fifth package to Sky (C) and the final package to Setanta (D). In order to materially undermine Sky’s wholesale position, Sky would need to lose the majority of the Live FAPL Rights 5.47 As explained above in paragraphs 5.6 to 5.9, we are assessing the extent of market power held by Sky by reference to the dominance threshold. Under this framework we therefore consider whether potential competition is sufficiently strong to undermine the dominant position suggested by Sky’s market shares. In other words, the relevant issue is not whether small scale entry is possible/viable (for example by a channel that only broadcasts a small number of sports events). Rather the question is whether entry on sufficient scale to materially undermine Sky’s wholesale position is likely. 5.48 We consider that Sky is likely to maintain its wholesale position if it wins the majority of the Live FAPL Rights. By “majority” we mean: 150 Package � Either any five packages of Live FAPL Rights; or A B C D E F Total No. of first pick matches 23 5 10 38 No. of second pick matches 23 8 7 38 No. of third pick matches 23 9 6 38 No. of fourth pick matches 15 9 24
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Pay TV phase three document Propose
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Section 1 1 Summary Pay TV phase th
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(4) In this section— Pay TV phase
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Ofcom’s views Pay TV phase three
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� Annex 3: consultation response
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Content aggregation and market powe
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Respondents’ views 4.36 Sky comme
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Section 7 7 Consumer effects Summar
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Choice Pay TV phase three document
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Sky Core Premium customers on DSat
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Premium customers on cable Pay TV p
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Distorted choice of bundles Pay TV
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Section 9 Pay TV phase three docume
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Set of relevant wholesale products
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Figure 65 Retail cost stack £ per
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Figure 67 Cost-plus cost stack £ p
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Effects on retail prices Pay TV pha
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Consultation questions Pay TV phase
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Annex 1 1 Responding to this consul
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Annex 2 2 Ofcom’s consultation pr
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Cover sheet for response to an Ofco
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Pay TV phase three document - Stakeholders - Ofcom

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