BT plans to undercut Sky’s sports packages 18/01/2010 |
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BT wants to offer its customers cheaper sports content in a move that could trigger a price war with Sky.
The telecoms company is planning to charge about £15 a month for Sky Sports 1 – about £10 less than Sky currently charges – if media regulator Ofcom orders Sky to drop the wholesale price it charges rivals for content.
If Ofcom rules that Sky must cut its wholesale prices, it means that the likes of BT and Virgin Media could pass on any price cuts to their customers.
BT would look to introduce a new price structure from the start of the 2010/11 football season. But a Sky spokesman said: “We invest almost £1bn a year to create a top-quality sports service.
“It would be perverse to force us to sell it on the cheap to competitors who have shown no appetite to invest in content or support British sport. Consumers do not benefit if regulation undermines the incentives for companies to invest.”
When it launched its probe in June, Ofcom said it believed “requiring Sky to make its premium channels available to other retailers on a wholesale basis is the most appropriate way of ensuring fair and effective competition”.
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