UK newspaper, the Telegraph, reports that under the proposals, Sky would wholesale Sky Sports 1 and 2, their high-definition versions, and 12 of its movie channels. Ofcom may also set the prices, and is asking for views on how to do this. It has also raised the prospect of referring the way Sky acquires rights to the Competition Commission.
If the plans go ahead, it would make it possible for rivals to offer Sky Sports without the other channels that Sky insists on subscribers paying for. Dresdner Kleinwort analyst Omar Sheikh told the paper that this could bring down the price of access to Sky Sports from £36 to as little as £21. He said the wholesale regime could “mark a significant potential challenge to the economics of Sky’s business”.
In return, the regulator has agreed to allow Sky to launch Picnic, a collection of pay sport and film channels broadcast on the same platform as Freeview, meaning that subscribers would require an aerial rather than a dish.
Sky spends around £929 million a year on sporting events and £281 million on films. It has 9 million subscribers.
