Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
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broadcasters pay for the rights to other sports events, as compared to the Live
FAPL Rights, this is strong evidence of the particular desirable characteristics of
live FAPL matches.
� The importance of successfully bidding for the Live FAPL Rights is also reflected
in contemporaneous documents. For example, [ � ] 294 . It is also reflected in [ �
].
5.52 Turning to the second issue, the available evidence suggests that Sky’s strong
wholesale position will persist unless Sky loses multiple packages of Live FAPL
Rights. Setanta only acquired two packages of live FAPL Rights in 2006 and, as
shown by the market share figures presented above, Sky has retained a very high
market share. This is notwithstanding Setanta’s success in winning various other
sporting rights (including other popular football matches, such as FA Cup and
England international matches). It is also supported by [ � ] 295 . Similarly, [ � ] 296 .
5.53 The particular importance of package A reflects the characteristics of that package (it
contains 23 first pick matches i.e. 61% of the 38 first pick matches available). Its
importance is confirmed by [ � ] 297 .The importance of first pick matches and
package A in particular is also highlighted by documents provided to Ofcom. [ � ] 298 .
Sky is likely to win the majority of the Live FAPL Rights
5.54 Following the recent sale of the Live FAPL Rights for the 2010/11 to 2012/13
seasons, further Live FAPL Rights will not become available until the 2013/14 season
(the rights to this and subsequent seasons will probably not be sold until 2012). Entry
is thus not possible in the very short term.
5.55 Moreover even when the rights to later FAPL seasons become available, we
consider that Sky is likely to win the majority of those rights.
5.56 Our view is strongly supported by the historical evidence. Prior to the European
Commission’s intervention, Sky has always won all of the Live FAPL Rights. While
the Commitments prevent the FAPL from awarding all the Live FAPL Rights to Sky,
Sky nonetheless won the majority of those rights in both 2006 and 2009. We regard
this as clear evidence that, contrary to Sky’s claims that these rights are
“contestable”, in practice there are significant barriers to other parties winning
sufficient rights away from Sky.
5.57 This is confirmed by more detailed analysis of the bids submitted in 2006 and 2009.
relates to 2008/09 to 2011/12. The annual Six Nations rights cost of £40m relates to the period 2010
to 2013 (previously the annual cost was £30m per annum). First Pay TV Consultation, Annex 10,
pages 3 and 69.
294 [ � ].
295 [ � ].
296 [ � ].
297 [ � ].
298
[ � ]. This document was produced prior to Ofcom’s current investigation and we consider that it
reliably reflects [ � ] views at the time.