Go Back   Eurocardsharing > General Discussions > General Satellite News > Latest Satellite News

Latest Satellite News Discussion, Update Sky warns Ofcom putting investment at risk at General Satellite News forum; Sky warns Ofcom putting investment at risk By Julian Clover June 30, 2009 17.46 UK Sky COO Mike Darcey has ...

LinkBack Thread Tools Display Modes
Update Sky warns Ofcom putting investment at risk
Bacteria's Avatar
Posts: 96,015

Level: 124 [♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥]
Life: 4638 / 4638
Magic: 32005 / 102549
Experience: 68%

Thanks: 1,107
Thanked 5,578 Times in 1,419 Posts
Join Date: Oct 2006
Age: 37
Update Sky warns Ofcom putting investment at risk - 01-July-2009, 00:10

Sky warns Ofcom putting investment at risk

By Julian Clover

June 30, 2009 17.46 UK

Sky COO Mike Darcey has said the satcaster wants to see its premium content widely distributed, but it disagreed fundamentally with Ofcoms approach, analysis and conclusions. His comments on Ofcoms proposals for Sky to wholesale its film and sports channels, came at the Institute of Economic Affairs Future of Broadcasting conference in London Tuesday.

Darcey said there were just two conditions put forward by Sky for the carriage of its premium content. First, the platform needs to be technically secure and comply with the requirements of our key rights partners. And second, the terms of distribution need to be such that we can see a prospect of a fair and reasonable return on our investment in content. He added the debate was not about distribution, but the terms of that distribution, and who gets to set the terms. In essence, Ofcoms proposal is that Sky should sell its content for prices that do not fully reflect the underlying costs and the high levels of risk in our content business.

Darcey said Ofcoms proposals represented a cut of 30% in the current wholesale rate, making it in effect a subsidy, at Skys expense, for BT and Virgin Media. In proposing to force down the price of content, Ofcom appears motivated principally by a desire to promote investment in new delivery platforms. He said the two platforms had done little to invest in the content business themselves.

According to Darcey, the regulator believes it can make BT retailing a more attractive business, but in the process risks undermining the 1.3 billion invested by Sky in movies and sports each year. When Sky pioneered the launch of HD in the UK a few years back, it was greeted with widespread scepticism but we pushed ahead and invested hard. If we had known then that Ofcom, a few years later, having seen some initial success, would impose detailed price regulation on our new HD channels, it might just have coloured our enthusiasm for investment in the first place.

Sky has already publicly stated that it is prepared to challenge Ofcoms proposals in the courts, and Darceys comments can only go down as the opening shots in what is already feels like a protracted battle.

Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump

ECS on RSS ECS on Twitter ECS on Facebook ECS on Youtube
Follow us on:

Powered by vBulletin
Copyright 2002 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO ©2011, Crawlability, Inc.