ITV FTA Decision: ITV drops complaint against Sky....

DMC

Almost a year ago, we had this thread... Good chance ITV will go FTA....

Since then, as you probably can remember, ITV have had lodged a complaint against Sky with Ofcom over the amount it charges for encryption, amougst other things. While waiting for this, ITV have not made the decision to go FTA.

News today is that ITV have dropped the complaint, but we dont know if that means that ITV will continue to continue encryption....

ITV backs down over Sky access charges

11.30am
Chris Tryhorn
Wednesday August 10, 2005

http://media.guardian.co.uk/broadcast/story/0,7493,1546228,00.html

ITV has withdrawn its formal complaint to regulators about the charges it pays to BSkyB for ensuring that satellite viewers receive the correct regional version of ITV1.

The company had alleged that Sky's proposed charges were "unfair, unreasonable and unduly discriminatory and therefore in breach of BSkyB's obligations under EU and UK law" when it lodged a complaint with Ofcom at the end of last year.

But today it withdrew its complaint after resuming negotiations on a new contract with Sky, and the regulator, Ofcom, said it had closed its file on the case.

A Sky spokesman said ITV's decision vindicated the satellite operator: "We have consistently maintained that we offer conditional access services including regionalisation on fair, reasonable and non-discriminatory terms.

"ITV has effectively acknowledged this by withdrawing its complaint to Ofcom. The offer of conditional access charges, which we made to ITV last year, is still open for acceptance by ITV."

Since contract talks with Sky broke down last year, ITV has been paying Sky under the terms of its previous deal, which expired in November.

ITV wants a big reduction on the £17m it is believed to pay Sky each year to encrypt and regionalise its channel.

Regionalisation means that a viewer in Manchester, for instance, will automatically get Granada at channel 103 on Sky Digital, while a Belfast viewer would get Ulster TV.

The channel is required to broadcast region-specific programming under its public service obligations and derives significant revenues from advertising tailored to local audiences.

ITV now has to decide whether to follow the BBC and broadcast "in the clear", abandoning Sky's encryption services that stop viewers outside the UK picking up ITV1. The ITV2 and ITV3 channels already broadcast without encryption.

Encryption is an important issue for rights holders such as sports bodies and Hollywood studios, which do not want their properties being shown in "overspill" countries such as Ireland and France.

Although the BBC went "in the clear", it signed up to a new package of services to ensure the right regional editions of BBC1 and BBC2 appeared in the 101 and 102 slots.

ITV also complained to watchdogs about Sky's charges for "conditional access", or encryption, after it negotiated its last contract in November 2001. The regulator at that time, Oftel, later rejected the complaint.

Round Cable

'The ITV2 and ITV3 channels already broadcast without encryption.'

ITV2, really?

DMC

Ahh good ol' MediaGrauniad. ITV2, is currently FTV, and not FTA.

channelsurfer

so what do you wise folks think of it all. does it suggest that they will probaly keep itv1 and 2 ftv and itv3 and itv4 fta? or could they just encrypt them all. leaves em with egg on their face sorta because they will have to still pay sky around 17million a year for encrytpion if they go that route

Round Cable

From ITV

ITV wrote:

ITV said in spite of today's move it might choose to make the complaint again. "Negotiations have re-opened with Sky in relation to regionalisation services for ITV1 and as a result ITV has requested that Ofcom suspends investigation of its current complaint pending the outcome of these negotiations," an ITV spokesperson said.

"ITV will not hesitate to re-submit the complaint if it judges that Sky's proposed charges for regionalisation services continue to be unfair, unreasonable and discriminatory. In this event Ofcom will reactivate the complaint at the point at which it was suspended."

Charles Slane

Hmmm.. in the long run it probably doesn't really mean anything at all in relation to whether or not they'll go FTA. The dispute seems to have been centred around regionalisation charges rather than encryption charges. All it seems to have done is delayed the FTA decision.