Pay TV phase three document - Stakeholders - Ofcom

Section 11
Pay TV phase three document – non-confidential version
11 Consultation on licence conditions
Summary
11.1 The previous two sections set out our proposed policy in relation to various pricing
and other aspects of a wholesale must-offer remedy. Implementation of these
proposals would mean amending the conditions attached to certain licences.
11.2 Below are draft licence conditions which we propose to insert into the licences
described. We welcome views from consultation respondents on the specifics of
these drafts.
Introduction
11.3 Section 2 explains the legal framework for the insertion of licence conditions under
s316 CA03. This enables Ofcom to set conditions in broadcast licences to ensure fair
and effective competition. As set out in previous sections, our proposal is to put in
place licence conditions to require Sky to wholesale some of its premium sports and
premium movies channels on regulated terms.
11.4 This section sets out the practicalities for how we intend to put these proposals into
practice, including a new draft condition. If we continue with these proposals, we will
put in place amended licence conditions, taking into account comments from
consultation respondents on the draft condition.
Affected channel licences
11.5 The affected licences are for the following channels:
� Sky Sports 1, Sky Sports HD, Sky Sports 2, and Sky Sports 2 HD.
� 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.
Taking into account future changes
11.6 At this point, we can only put in place amended licence conditions on channel
licences that currently exist. As we have described in previous sections, television
channels are not fixed products; it could well be that in future, Sky might seek to
replace a channel named Sky Sports 1 with one named differently, licensed under a
new channel licence, containing a somewhat different set of content, but still
corresponding with the channels over which we have concerns.
11.7 There is no mechanism by which channel licences automatically adapt to this type of
change. However, any proposed new licence, or change to an existing licence, would
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