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Pay TV Review - Summary of Sky Response

Pay TV Review - Summary of Sky Response

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Published by Robert Andrews

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Published by: Robert Andrews on Dec 07, 2007
Copyright:Attribution Non-commercial

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07/14/2010

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Summary of Sky\u2019s response to the submission to Ofcom on the need for a market
investigation into the pay TV industry
In its response to Ofcom, Sky describes the complaint as \u201cmisconceived, exaggerated and
cynically self-serving\u201d(A6.1).

- \u201cThe Complaint contains a number of serious factual inaccuracies and the arguments within it
are flawed. When properly tested, the Complaint fails to make out a basis for a market
reference.\u201d (A1.2)

THE COMPLAINT MISREPRESENTS THE CONTEXT IN WHICH PAY TV SERVICES ARE PROVIDED
- \u201cThe Complaint considers the provision of pay TV services in a context that is entirely divorced
from the reality of the current conditions of competition.\u201d (A2.1)

- \u201cIt fails to take into account two extremely important elements of the actual context in which pay TV services in the UK are provided: (i) competition between pay TV and free to air television services; and (ii) significant and ongoing changes at almost every level of the audiovisual sector in the UK\u201d (B1.1)

- \u201cThe provision of pay TV services is treated in the Complaint as though it exists in a
hermetically sealed bubble, free from influence from, or interaction with, other services, as if
the only competition faced by providers of pay TV services is from other providers of pay TV
services.\u201d (B2.1) \u201cThis is self-evidently incorrect. All providers of pay TV services face
significant competition from, in particular, free to air television services.\u201d (B2.2).

THE UK HAS ONE OF THE MOST DYNAMIC AND INNOVATIVE AUDIOVISUAL SECTORS IN THE
WORLD, DELIVERING VERY SIGNIFICANT BENEFITS TO CONSUMERS
Sky\u2019s response highlights some of the most prominent changes in these sectors since 2001
(B3.7):
\u2022
the launch of Freeview and the rapid take-up of use of DTT services
\u2022
rapid growth in the DTH platform
\u2022
continued proliferation in the number of television channels available, both free and
pay
\u2022
the exit of ITV and Channel 4 from the supply of pay TV channels to focus entirely on
providing free to air services
\u2022
the emergence of Setanta as a pay TV sports broadcaster.
\u2022

very significant changes to the distribution and consumption of movies, including a
huge expansion in the number of movies available on free to air channels, a massive
expansion in the take-up and use of DVDs, and an increasing number of video on
demand movie services

\u2022

introduction and take-up of new technologies, such as delivery of audiovisual
programming over the internet, personal video recorders, high definition (\u201cHD\u201d)
television; and mobile TV.

\u2022
the development and launch of BT\u2019s hybrid Freeview/IPTV platform
THE COMPLAINT CONTAINS FUNDAMENTAL FLAWS
- \u201cThe Complaint fails to point toan y detriment to consumers \u2026 let alone providing evidence to
substantiate its allegations\u201d (A2.2)

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