Digital TV News

Sky fights Ofcom pay-TV ruling

Monday 26 April, 2010

By Becca Talbot - becca@consumerchoices.co.uk

Sky has launched an appeal against regulator Ofcom’s decision that it must slash the price it charges rival digital TV providers to broadcast its premium channels, Sky Sports and Sky Movies.

Sky, the UK’s largest satellite TV provider, has asked the Competition Appeals Tribunal (CAT) to grant it an “interim relief” from Ofcom’s ruling that it must reduce the price it charges Virgin Media and BT to show its premium sport and movie channels.

The Ofcom pay-TV ruling, which was announced last month, came after a three-year investigation by the regulator.

Sky had been ordered to reduce the price it charges rival providers by 23%, allowing BT Vision and Virgin’s customers to subscribe to Sky’s content for less.

However, Sky is taking legal action against the decision. The Telegraph reported that in court on Friday, James Flynn, who is acting on behalf of the satellite TV giant, said Sky would be “severely and irreversibly prejudiced” if it is forced to reduce its prices.

Justice Gerald Baring, president of the CAT, commented that there would be an “awful amount of disappointed customers” if prices were not reduced in time for the start of the next football season.

Ofcom said the full appeal would take at least 15 months. A judgement in the interim relief hearing is expected today.