Ofcom probes pay-TV market competition

Published on Tuesday 20 March 2007 11:54

MEDIA regulator Ofcom is to launch an investigation into the pay-TV market after complaints from a number of smaller rivals.

The move also follows a high-profile battle between BSkyB and Virgin Media which recently saw Sky channels pulled from the Virgin service.

The regulator said today it would look into competition issues in the pay-TV industry, which includes cable, digital terrestrial television, satellite and TV through broadband, known as TV over DSL. Earlier this month, Virgin Media viewers were left without some BSkyB-broadcast channels, including the popular Sky One, as a result of a battle over content fees.

Ofcom said a number of groups, including the National Consumer Council, had expressed concerns about the loss of BSkyB channels on Virgin Media's pay TV service.

The regulator has also been asked by other broadcasters, such as BT, Setanta, Top Up TV and Virgin Media, to look at the market to see if competition rules have been broken. It will subsequently decide whether it will refer the issue to the Competition Commission.

Ofcom said in a statement: "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."