Digital TV News

TV footy fans get cut-price Sky Sports

Tuesday 4 May, 2010

By Becca Talbot - becca@consumerchoices.co.uk

Sports fans will be able to watch Premier League football and the Ashes cricket without having a Sky subscription, as BT Vision and Top Up TV plan to offer customers discounted Sky Sports packages before the start of the new season.

Sky, the UK’s largest satellite TV provider, has made an out-of-court agreement with regulator Ofcom to allow BT Vision, Top Up TV and Virgin Media to broadcast its premium Sky Sports channels at a reduced price.

In March earlier this year, Ofcom ruled that Sky must cut the price it charges rival providers to access its premium channels by 23%, allowing BT Vision and Virgin Media’s customers to subscribe to Sky’s content for less.

Sky has exclusive rights to five out of six Premiership matches, as well as golf, cricket and rugby, which it shows on its Sky Sports 1 and 2 channels.

Initially refuting Ofcom’s ruling, TV giant Sky launched a legal appeal with the Competition Appeal Tribunal (CAT) two weeks ago, to try to put the enforcement on hold. However, on Thursday last week, both Sky and Ofcom agreed an “interim relief” deal.

Because Sky’s CAT appeal could take up to nine months, it has come to an arrangement with Ofcom to allow TV providers BT, Virgin Media and Top Up TV to show its channels at the reduced rate, but the providers must put the difference between the old amount and the new amount into an escrow account.

If Sky’s appeal is successful, all the money will be paid back to Sky, however if it loses the appeal, the cash will be handed back to the rival digital TV providers.

A spokesman for Sky said: “We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom’s decision. We remain fully focused on our substantive appeal, which will be filed with the CAT in due course.”

How to get cheap Sky Sports channels

BT is planning to offer its BT Vision customers Sky Sports 1 for about £15 a month. The internet TV provider said it was “delighted” that it will be able to offer Sky Sports 1 and 2 in time for the start of the new football season.

A BT spokesman said: “We are taking a large gamble because if we lose, we will not get our money back and stand to lose millions. But we believe we will win and we are delighted that Ofcom’s decision can be implemented pending the full appeal.”

Virgin Media will be able to offer cut-price Sky Sports packages by mid-May as it has an ongoing deal with Sky. The cable TV giant has previously sold Sky Sports 1 and 2 subscriptions at £19.15 a month.

A spokesman for Virgin Media said: “We’ve been fighting Sky for years as they effectively locked everyone out of the market. We offered Sky Sports 1 and 2 but did not make money on it. The other broadcasters couldn't even strike a deal.”

He confirmed that Virgin Media will cut its pay-TV prices: “We will announce our new pricing structure mid-May. It will be a competitive package.”

Top Up TV, a digital TV service which lets Freeview customers subscribe to more channels, is also planning to offer both Sky Sports channels to its customers at “competitive prices”. It is widely that the company will sell Sky Sports 1 and 2 for around £20 per month.