Ofcom has confirmed that it is undertaking a review of the UK's pay television industry at the request of BT, Setanta, Top Up TV and Virgin Media.
The firms have asked the media regulator to consider making a market reference to the Competition Commission regarding Sky's dominance in the industry.
In a statement, the regulator said: "After careful consideration, Ofcom has today announced that it will investigate the pay TV market, including obtaining information from market participants. Following this assessment Ofcom will decide whether to make a market reference to the Competition Commission. Ofcom will also consider whether any concerns would be better addressed using sectoral powers or the Competition Act 1998.
"Consumer groups including the Ofcom Consumer Panel and the National Consumer Council have also expressed concerns to Ofcom about one aspect of the pay TV market: the loss of BSkyB channels on Virgin Media’s pay TV platform.
"Separately, BSkyB has announced a proposal to launch a new pay TV service on the DTT platform, based on new set-top box specifications. On receipt of a licence application, Ofcom would consult on whether to approve the licence variations needed for such a service. In the meantime, the implications of the possible entry of BSkyB into the pay DTT market, including impact on consumers and emerging competition, will be part of the market investigation announced today."
So because the likes of BSB/CWC/NTL/TW/ITV/TUTV/BT/NYNEX/CABELTEL/BELL etc have been complete and emabarressing failiures with their pathetic attempts to provide multi-channel television services over the last two decades, and Sky, who risked a LOT of money and didnt even make a profit until the early 2000's due to mass investment in making their service work and excelling into the best by far, have been extremely successful, all the cry babies are calling for an "investigation" into why they are so successful and if they should be allowed to continue with their dominance??
They have circa 9 million households with Sky Digital/Freesat from Sky, it can hardly be counted as dominance when compared with the fact that that Freeview has 7 million, cable has 3 million TUTV has 400,000 and BT Vision has an impressive 27 households with tv services.
Don't forget, it took Sky's input to make DTT successful via the Freeview platform, which was a total mess when ITV had the license. I feel this is just Virgin Media and TUTV's way of trying to force Sky to lower their market share and BT's way of trying to oust Sky before they are forced to open up completely in 2009. Sky are being punished for being successful I think.
And don't forget who will be paying for this "investigation", we the tax payers...
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