ONdigital and Sky threaten digital cable

BSkyB and ONdigital are attempting to strangle digital cable’s launch at birth by lobbying a joint Independent Television Commission (ITC)/Oftel investigation to prohibit the cable industry’s low priced TV and phone packages.

This is despite last month’s moves by BSkyB and ONdigital to give away free their set-top boxes previously priced at £199, and to offer 40 per cent dsicounts on standard BT phone bills to new subscribers.

Sky and ONdigital are simultaneously offering low priced TV and phone services, while arguing behind closed doors that these packages be banned, or scaled back.

One source in the cable industry says: “These two are going along with a sales tactic over the short term, which they will break.”

In papers submitted earlier this month to the ITC/Oftel investigation into whether TV and phone packages are anti-competitive, Sky argues that the watchdogs should “prohibit pure bundling of TV and telephony services by cable operators”. ONdigital argues similarly.

But both Sky and ONdigital refer to their offers as “discounts” rather than as bundled packages.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here