Ofcom orders SKY Sports to cut wholesale rate by 23%

mike65

article

The media regulator Ofcom today ordered BSkyB to reduce the amount it charges rivals to offer Sky Sports by more than 20%.

BSkyB must reduce the wholesale price at which it sells Sky Sports 1 and Sky Sports 2 to rivals such as Virgin Media and BT by 23.4% from the current £13.88 to £10.63 per subscriber per month. On the basis that most subscribers buy packages including the sports channels, the reduction for a bundle is 10.5% from £19.15 to £17.14.

The new wholesale pricing is effective immediately, the regulator said, and BSkyB now has six weeks from today to make a "reference offer", effectively a template contract, to other pay-TV providers. BSkyB, however, intends to apply to the Competition Appeal Tribunal for a stay on implementing the ruling.

pa990

sky are appealing the decision

HyperSkypeWiper

So how much a month would sky sports be, if their appeal falls through?

snaps

As far as im aware this only is for the United Kingdom. Republic of Ireland are not covered by offcom. Sky will carry on charging what they want here.

Max Power1

HyperSkypeWiper wrote: »

So how much a month would sky sports be, if their appeal falls through?

this only effects other pay tv providers (eg if it was applicable to Ireland, the likes of Chorus/NTL or Magnet for example)

grahamcpole

to be fair sky seem to be the ones investing in new technologies and in better channels and programming. why should they be told that they have to sell products they produce at drop down prices. from what i heard they are being asked to sell some channels at a loss to other providers. if this were the case what would be the incentive to continue to improve channels such as sky news, sky sports etc etc...

snaps

have you seen how much they make?
yet again lads, this price reduction only affects the uk, not ireland.