Sky threatens legal action against Ofcom's pay-TV proposals

LONDON - Sky has threatened legal action against Ofcom's plans to make its sport and movies content more widely available through wholesale to retailers.

Sky set to challenge Ofcom's pay-TV proposals
Sky set to challenge Ofcom's pay-TV proposals

In a statement, BSkyB said: "We disagree fundamentally with Ofcom’s approach, analysis and conclusions – in light of Ofcom’s determination to pursue its preferred outcome, we will use all available legal avenues to challenge this unwarranted intervention."

This morning, Ofcom published its findings on the pay-TV market and concluded: "Some programming, such as live top-flight sport and first-run Hollywood movies, is of particular importance to consumers.

"Ofcom considers that Sky has market power in the wholesale supply of channels containing this attractive content, and that it is acting on an incentive to limit the distribution of these channels to rival TV platforms."

The regulator’s proposed remedy is a wholesale system that would make this premium content more widely available and which could result in it appearing on platforms including BT Vision, Top Up TV and broadband services.

Ofcom argued that Sky’s hold on this content could provide a barrier to innovation of new media channels.

The regulator will hold a further three-month consultation before delivering its final proposals.