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Ofcom shoots down Sky pay-TV Freeview plans

by Jeremy Lee, Marketing 15-May-07, 08:30

LONDON - BSkyB's plans to launch a pay-per-view service on the Freeview platform are in tatters after it emerged that Ofcom is not yet willing to give the broadcaster permission to change the terms of its broadcast licence.

Under James Murdoch, Sky had planned to pull its three free-to-air channels, which include Sky News, and replace them with a premium line-up available through a new-specification digital-terrestrial set-top box.

The Sky offering would have included some coverage of Premiership football to combat the expected impact of Setanta showing live games on its sports channels from next summer. The introduction of the pay channels was also intended to take advantage of Freeview's popularity; it is available in 8.2m homes, according to Gfk.

Sky's proposals prompted rival broadcasters, including Setanta and pay-TV service Top Up TV, to lobby Ofcom to launch an investigation into the pay-TV market, and Sky's position within it.

Sources said that Ofcom has decided Sky will not be permitted to axe Sky News from the platform, although a spokesman for the regulator said that the formal application, including a public consultation, has not yet begun and that Ofcom has asked Sky to submit additional information. A Sky spokesman said: 'We have made an application to Ofcom and are in dialogue about what happens next.'

Comments

Brian Butterworth - 15/05/2007

Interesting, MediaGuardian has 100% opposite line on this story ... Ofcom has asked Sky for more information on its DTT pay-TV plans, pushing back the start of the media regulator's official consultation on the proposals. Ofcom has, however, denied reports that a decision had already been made refusing BSkyB permission to change the terms of its broadcast license. "There are discussions going on about this but we are miles away from taking any decision," the Ofcom chief executive, Ed Richards, told MediaGuardian.co.uk.

Jeremy Lee - 15/05/2007

Thanks for your comments but I don't agree that it is 100% the opposite - the sticking point is the proposed removal of Sky News as Ofcom is concerned about the plurality of news provision on Freeview if it disappeared. This is something that the Guardian's follow-up also acknowledges. Hence Sky's plan to remove the channel and replace it with a pay-per-view service is in tatters, as revealed exclusively in Marketing.

Brian Butterworth - 16/05/2007

hmmm. Compare "Ofcom has decided Sky will not be permitted to axe Sky News" and "Ofcom shoots down Sky pay-TV Freeview plans" with "There are discussions going on about this but we are miles away from taking any decision". I thought the plans appeared on MediaGuardian first...

Jeremy Lee - 17/05/2007

Given that the removal of Sky News from Freeview was pivotal to Sky's plans to launch a pay-TV service on the DTT platform, the headline is entirely accurate. As for your other point, I'm afraid you are wrong.