Ofcom Publishes Consultation On Pay TV Regulation - Quick Facts

(RTTNews) - UK regulator Ofcom Friday published a consultation as part of its review of the pay TV 'wholesale must-offer' remedy.

The review will decide whether regulation seeking Sky to offer its Sky Sports 1 and 2 channels to other pay TV providers to ensure fair and effective competition in the UK's pay TV sector remains appropriate.

In 2010, Ofcom imposed an obligation requiring Sky to offer to wholesale Sky Sports 1 and 2 at prices set by Ofcom. This was designed to deliver choice and innovation to consumers through enhanced competition.

The obligation has been in effect since 2010 for Virgin Media (cable) and BT (digital terrestrial TV) while litigation has been ongoing. In November 2014, it was extended to IPTV for BT.

Ofcom said in 2010 that it would review the obligation after three years in light of developments in the market. In April 2014, Ofcom announced it was commencing this review.

The regulator noted that there have been significant developments in the market since Ofcom concluded its review in 2010.

Ofcom's assessment indicates that Premier League and Champions League football are key content likely to be capable of influencing consumers' choice of pay TV retailer. Therefore, Ofcom is consulting on its view that limited distribution of this content may harm competition between pay TV retailers.

According to Ofcom, there are circumstances in which both Sky and BT may have incentives to limit distribution of their key sports content.

Ofcom said it recognizes that the pay TV sector is evolving rapidly and any assessment is affected by continuing developments in the market.

In assessing whether regulation remains appropriate or whether it should be removed, Ofcom will take account of such developments, including the outcome of the next Premier League auction.