Pay TV phase three document - Stakeholders - Ofcom
Pay TV phase three document - Stakeholders - Ofcom
Pay TV phase three document - Stakeholders - Ofcom
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<strong>Pay</strong> <strong>TV</strong> <strong>phase</strong> <strong>three</strong> <strong>document</strong> – non-confidential version<br />
Figure 15 Average audience for key sports events on Sky channels in 2008<br />
(000s)<br />
Average<br />
audience on<br />
Sky Sports 1<br />
Source: <strong>Ofcom</strong> analysis of BARB data<br />
4.123 There is very little top flight football 126 on Sky Sports 3. However; Sky Sports 3<br />
broadcasts a significant amount of Sky’s golf coverage. It is possible that golf fans<br />
would consider Sky Sports 3 a substitute for content on Sky Sports 1. However,<br />
although 20% of subscribers highly value golf, only 1% of subscribers highly value<br />
golf but do not value football.<br />
4.124 It is difficult to know whether consumers would consider switching to Sky Sports 3 as<br />
we cannot observe the notional ‘price’ that consumers pay when they access the<br />
channel within their Sky Sports bundle. However, given the relatively low amount of<br />
top flight football shown on this channel compared with either Sky Sports 1, 2,<br />
Setanta Sports 1 or FTA we consider that it would be a relatively weak substitute<br />
even at a very low notional price.<br />
4.125 Sky Sports Xtra contains most of Sky’s tennis coverage and a small amount of CL<br />
football (usually not featuring FAPL teams), golf and cricket. It shows about 71% of<br />
the major tennis tournaments shown on Sky channels and attracts about 52% of<br />
Sky’s total audience for tennis.<br />
4.126 There is no retail price for Sky Sports Xtra as it is bundled ‘free’ in retail packages but<br />
the wholesale price is £1.20 127 . Given the low amount of football, golf and cricket on<br />
Sky Sports Xtra compared with Sky’s other channels it is likely that the channel<br />
would only appeal to the small proportion (1%) of subscribers to Sky Sports 1 who<br />
highly value only tennis. We consider it would be a relatively weak constraint on Sky<br />
Sports 1 at the wholesale level (either as a direct wholesale demand side substitute,<br />
or as an indirect constraint on Sky Sports 1).<br />
4.127 FTA broadcasters show some highly valued sport which could potentially substitute<br />
for the content found on Sky Sports 1. For example, there is some live top flight<br />
football. FTA also broadcasts some of the sports considered important by fewer<br />
subscribers such as golf, rugby union and tennis. However there is much less<br />
content than found on premium sports channels such as Sky Sports 1 and 2 and the<br />
content is scheduled relatively infrequently compared with content found on<br />
dedicated sports channels.<br />
126 For example matches featuring FAPL teams.<br />
Average<br />
audience on<br />
Sky Sports 2<br />
Average<br />
audience on<br />
Sky Sports 3<br />
Average<br />
audience on<br />
Sky Sports<br />
Xtra<br />
Cricket 107 38 11 7<br />
Super League rugby 99 80 34 13<br />
Tennis 164 13 10 15<br />
127 The wholesale price of Sky Sports 1 or 2 is £13.48. Though most wholesale subscribers take Sky<br />
Sports Mix (Sky Sports 1, 2 & 3) for which the wholesale price is £18.39 or £23.40 if bought with Sky<br />
Movies Mix. Source: Sky response to <strong>Ofcom</strong> information request of 29 May 2008.<br />
81
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