Its official Sky told to cut wholesale prices 31/03/2010 |
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Media regulator Ofcom has confirmed that Sky will have to cut the price it charges rivals to buy its sports channels.
The broadcaster must sell Sky Sports 1 and 2 for up to 23 per cent less than the current wholesale price.
Sky said it would appeal against the "unwarranted intervention", which followed a three-year investigation into the pay-TV market.
"This is a marketplace where customers are well served with high levels of choice and innovation," Sky added.
"Consumers will not benefit if regulators blunt incentives to invest and take risks."
Sky will have to sell Sky Sports 1 and 2 for £10.63 a month each 23.4 per cent less than at present. If the two channels are sold together, Ofcom has set a price of £17.14 a discount of 10.5 per cent on current wholesale charges.
Sports governing bodies which rely on lucrative TV rights deals fear the proposals will mean less money going into grassroots sport. Six of the largest governing bodies recently wrote to Ofcom to outline their concerns.
A spokesperson for the English Premier League said it was "very disappointed" and was studying the findings carefully.
BT said it hoped to offer Sky Sports 1 and 2 cheaper than Sky in time for the start of the next football season.
But it added: "Ofcom should have gone much further than it did.
"They should have included all Sky Sports channels, not just two. The wholesale price for the two sports channels is higher than the regulator had previously suggested."
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