Ofcom concern over pay-TV

Dec 19 2007 by Tony McDonough, Liverpool Daily Post

BRITISH media regulator Ofcom said yesterday it had concerns about competition in the pay-TV industry.

In an assessment of the pay-TV market, Ofcom questioned whether those firms which offer channels on a wholesale and retail basis, such as BSkyB and Virgin Media, have the incentive to make content such as sports and movies available to their rivals.

The regulator said the investigation came at a critical time for the industry, as new business models were now able to enter the market, due to new technologies such as TV over the internet.

Ofcom launched an investigation into the sector in March, following complaints from Virgin Media, which employs around 2,000 people and has more than 100,000 customers in Merseyside, BT Group and Setanta and BSkyB was trying to suppress competition.

In response, BSkyB has said there is no evidence to substantiate the claims and argues that it also faces competition from free-to-air broadcasters such as the BBC.

Ofcom will publish a further consultation in the spring.