UK regulator proposes Sky share channels with other broadcasters

June 26, 2009

United Kingdom media regulator Ofcom has proposed that British Sky Broadcasting (Sky) make its premium film and sports channels available to rival broadcasters.

According to Ofcom, this would be the "most appropriate way of ensuring fair and effective competition". On hearing the news Sky responded by saying it "fundamentally" disagreed with the proposal and will use "all legal channels" to stop it.

Ofcom proposed they make the subscription channels available at a "regulated price" to its rivals which would enable them to access and offer more channels for their viewers. Ofcom has requested that parties respond by August 18.

Ofcom were quoted as saying "We do not believe that this proposed remedy would have a disproportionate impact on Sky, since we consider the proposed prices are above the level required to allow Sky a reasonable return on its content costs". BT Group welcomed the proposal saying "Prices have been too high for too long but this could all change if Ofcom breaks Sky's stranglehold."