Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
2.62 A number of these allegations are already addressed directly in this document, and in
these cases we explicitly set out whether we believe it would be appropriate to take
any action under CA98, specifically:
� Allegations relating to Sky’s conduct in relation to its supply of Core Premium
channels are discussed in section 6.
� Allegations relating to the acquisition and usage of rights from the six major
Hollywood studios are also discussed section 6.
� Allegations relating to the acquisition and usage of sports rights are discussed in
section 12.
� Allegations relating to the supply of Core Premium channels to the commercial
sector are discussed in section 12.
2.63 There are some other groups of allegations which we have not taken forward on
grounds of administrative priority, specifically:
� Allegations relating to matters which were the subject of the High Court action
between Sky and Virgin on the supply of basic channels, which has now been
settled.
� Allegations relating to the supply of basic channels, which we are not focusing on
at this stage given our preliminary conclusions on the market for basic channels
reached in December 2007.
� Allegations which fall within the scope of existing ex ante regulation, but where
we have not received a complaint in relation to compliance with this regulation.
� Allegations which related to issues where the associated consumer detriment did
not warrant further attention at this stage, such as provisions in the contracts for
the purchase by Sky of basic channels.
2.64 There are no other allegations relating to Sky’s conduct made in the July 2007
Submission that we plan to take forward at this point.
Content of the remainder of this document
2.65 This is now the third document we have published as part of this pay TV market
investigation.
2.66 We have now consulted extensively on some of the issues in this document, and
received detailed responses. We set out our position in light of these responses as
follows:
� Our assessment of relevant features of the market.
� Market definition for the supply of wholesale sports and movies channels.
� Our assessment of market power in these wholesale markets.
� Competition concerns arising from this market power, relating to restricted supply
to downstream platforms and retailers.
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