Ofcom to spell the doom of Pay TV

The one of the longest running consultation in UK media is set to end after Ofcom announced that they will publish their report on Pay TV review later this month. It has taken Ofcom more than three years with detailed analysis which might reduce the BSkyB’s monopoly on premium sports and movies. It will lead to emerging of new players into the market which is held by SKY. Many competitors could then challenge Sky in pay-TV market which might lead to lowering of prices of Premier League football for consumers.
Basically Ofcom is trying to force Sky to offer premium sport and movies channels to competitors at a regulated rate. This would allow competitors to design their own pay-TV services. BT and Talk Talk are few companies which could benefit due to this. 

 Many from the industry say that whole issue would end up in courts as price decided by Ofcom for competitors won’t be acceptable to Sky. According to Sky principal shareholder Rupert Murdoch, the premium sports and movies channels were that made BSkyB Satellite a huge success. So if these premium sports and movies content are made available to competitors at a very low rate, it could very well threaten Sky dominance.

The whole issue has political tone too. The conservative government won’t be supportive of Ofcom. Economic wise too it going to affect, especially premier league whose major income comes from Sky exclusive right to broadcast football matches. In the end, consumers are going to benefit if these prices of premium channels go down.

Ofcom to spell the doom of Pay TV