Pay TV phase three document - Stakeholders - Ofcom

Set of relevant wholesale products
Pay TV phase three document – non-confidential version
9.18 We noted in section 8 that our preferred remedy is for a wholesale must-offer to
apply to channels which are the source of Sky’s market power – without access to
these channels other retailers would not be able to compete effectively with Sky.
9.19 Our competition concern relates to the supply of all Sky’s Core Premium Sports and
Movie channels and we therefore propose that a wholesale must-offer should apply
to:
� Sky Sports 1, Sky Sports HD, Sky Sports 2, and Sky Sports 2 HD.
� All of Sky’s premium movie channels apart from Sky Movies Classics.These are
Sky Movies Action & Thriller, Sky Movies Action & Thriller HD, Sky Movies
Comedy, Sky Movies Comedy HD, Sky Movies Drama, Sky Movies Drama HD,
Sky Movies Family, Sky Movies Family HD, Sky Movies Premiere, Sky Movies
Premiere HD, Sky Movies Premiere+1, Sky Movies SciFi & Horror, Sky Movies
SciFi & Horror, Sky Movies Screen 1, Sky Movies Screen 1 HD, Sky Movies
Screen 2, Sky Movies Screen 2 HD, Sky Movies Modern Greats, Sky Movies
Modern Greats HD, Sky Movies Indie and Disney Cinemagic and the HD
versions of these channels (see below for our discussion of HD) 519 .
9.20 Our aim in including these Core Premium channels within a wholesale must-offer
obligation is to address the adverse effects on consumers identified in section 7.
9.21 This means that we need to derive prices for each combination of Core Premium
channels that Sky makes available to its retail customers. If we only derived prices
for single wholesale Core Premium channels individually, while a competing retailer
would be able to assemble an offering with the Core Premium channels included
within Sky’s larger retail bundles, it would be unlikely to be able to do so at a
competitive price. Conversely, if we did not derive prices for standalone Core
Premium channels, this would be likely to impede other retailers’ ability to improve
consumers’ choice by offering differentiated retail products – for example, by offering
Sky Sports 1 as a standalone channel, or by offering Sky Sports 1 bundled with
Setanta Sports 1 520 .
9.22 The standard definition Core Premium wholesale products for which we derive prices
are as follows:
� Sky Sports 1;
� Sky Sports 2;
� Sky Sports 1&2;
� Single Movies 521 ;
519
We refer in this paragraph to the names of the channels as used in the relevant broadcasting
licences.
520 Or potentially an alternative Core Premium Sports channel.
521 While Sky retails two sets of movie channels – Sky Movies 1 and Sky Movies 2 – our approaches
to calculating wholesale prices for Sky Movies 1 and Sky Movies 2 result in identical prices for the two
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