Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
Figure 55 Package prices for Sky and Virgin Media
*For Virgin Media’s M package, which is “free” with an £11 phone line
**Figures in parenthesis show additional cost above basic package prices
Additional services
6.115 A further potential concern arises from the non-supply of Sky HD services to Virgin. [
� ] 410 .
6.116 [ � ] 411 .
6.117 [ � ] 412 , [ � ].
6.118 As Sky pointed out 413 , in the Second Pay TV Consultation 414 we noted that the quality
of content was of primary importance in attracting viewers. We said that content was
more important than platform features (such as EPGs, DVRs, VoD and HD), which
added to convenience or, in the case of HD, to technical quality. We noted that if
customers did not want to watch a programme, then the ability to watch it in HD
would not change their minds.
6.119 However, this view was set out in the context of discussing the importance of
premium content, and we continue to see Core Premium content as a key driver of
platform choice. However, where the same content is available on two platforms, as
Sky’s Core Premium content is on DSat and cable, then the customer’s choice
between those platforms cannot be influenced by the content. In this case, the choice
will be determined by other factors, such as price, consumer preference for one type
of platform over another, or the availability of enhanced platform features.
6.120 In this context, the availability of services such as HD could well make the difference
between a customer choosing one platform or another. As such they could be of
410 Virgin Media response to Second Pay TV Consultation, paragraph 7.38.
411 Sky response dated 17 Apr 2009 to Ofcom information request dated 20 Mar 2009, question 4.
412 Sky response, Section 7, paragraph 8.6.
413 Sky Response, Section 7, paragraph 8.6.
414 Paragraph 3.36.
204
Sky Virgin Media
Basic £16.50 £11*
Basic + Sky Sports
Basic + Sky Movies
Basic + Sky Sports
and Movies
£35.50
(+ £19)**
£33.50
(+ £17)
£42
(+ £25.50)
£37
(+ £26)
£41
(+ £30)
£48
(+ £37)