Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
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had abused a dominant position by exercising a margin squeeze on distributors of its
premium channels. Since 2002, Sky has continued to supply cable operators at a
price which it believes is compliant with the test laid down by the OFT (see paragraph
6.109).
Current situation
6.28 Our Second Pay TV Consultation 366 noted that Sky’s premium channels were
available through three routes:
� Directly from Sky as a retailer on DSat.
� On cable via retailers Virgin Media, Wight Cable and Smallworld.
� On Tiscali’s IPTV network, but retailed by Sky.
6.29 They are now additionally available from Sky as a retailer via Sky Player over the
internet. Sky has conducted negotiations with various other parties for the provision
of its Core Premium channels in recent years, but none of these negotiations has led
to an agreement for either wholesale or retail supply.
6.30 Figure 49 below shows the various major platforms and retailers, where Sky premium
channels are available and through which retailers. Figure 50 below that shows the
same information for Setanta’s premium channels. As the figures show, Sky’s
premium channels are available through two major retailers, whereas Setanta’s
channels were made available through five different major retailers. ESPN has
announced a similar intention to make its channel including live FAPL widely
available.
Figure 49 Distribution of Sky premium channels
Distribution
technology
Platforms
Retailers
Premium
channels
366 Paragraph 6.22.
Cable DTT IPTV Satellite