Regulator Proposes Cap On Sky Channel Costs, Review Of EPL Deal
U.K. communications regulator Ofcom Friday proposed to cap the cost of BSkyB's "premium sport and movie channels, potentially making them available on a wider range of platforms," and also "outlined plans to examine the terms of Sky's rights agreement" with the EPL, according to Chris Tryhorn of the Manchester GUARDIAN. The "core of Ofcom's proposals is the 'wholesaler-must-offer' system, which would require Sky to offer its premium channels -- Sky Sports 1, Sky Sports 2 and Sky Movies -- on a wholesale basis to retailers." Ofcom in a statement said that the review would "'involve exploring with the Premier League whether it is willing to provide further commitments' on top of those already given to the European Commission." Tryhorn notes BSkyB "reacted angrily to Ofcom's statement." A BSkyB spokesperson: "We disagree fundamentally with Ofcom's approach, analysis and conclusions. In light of Ofcom's determination to pursue its preferred outcome, we will use all available legal avenues to challenge this unwarranted intervention" (GUARDIAN.co.uk, 6/26).
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