Sports bodies object to Ofcom's pay-per-view plans 29/10/2009 |
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Four major sports governing bodies have made public their displeasure with Ofcom's plans for the price of premium live sport on television. The embattled communication industry regulator has drawn the wrath of the Premier League, the England and Wales Cricket Board, the Rugby Football Union and golf's PGA European Tour over its intention to force Sky to slash the wholesale price – the amount it charges rival pay-TV platforms – for its premium live sports by up to 30%.
The broadcaster currently sells only to Virgin Media, with a subscription to Sky Sports 1 costing Richard Branson's company £13.88 a month before its charge to the customer is added – 37% cheaper than if a consumer buys the channel direct for £22.17 (before VAT).
The outspoken reactions from the governing bodies are best summed up by the Premier League's outraged response: "Ofcom's consultation is fatally flawed. The remedy will be highly detrimental to consumers by significantly devaluing content rights. The remedy will reduce or remove the incentives on others to bid for content rights including live PL rights. This will devalue PL rights which will harm the PL's member clubs, football and most importantly consumers. The same is true for other UK sports and can only lead to less investment in UK sports, to the detriment of consumers."
Ofcom argues that there will be twin benefits – the wider distribution of premium live sport content, as well as a cheaper deal for consumers. Branson has said that if Ofcom's proposals go ahead Virgin and other pay-TV platforms, which include BT, would charge "20% less" for Sky Sports 1.
(Source: Guardian.co.uk)
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