OFT inquiry mars BSkyB results
Confirmation that the Director General of Fair Trading will refer BSkyB to the Restrictive Practices Court took the edge off BSkyB’s half-year results yesterday (Tuesday).
Sky reported advertising revenue up 19 per cent and revenue from cable subscriptions up 61 per cent, contributing to pre-tax profits of 106.3m – a 93 per cent increase on last year.
The number of Sky subscribers rose 345,000 to 5.2 million, chief executive Sam Chisholm said. About 33 per cent of UK subscribers now view via cable and Sky is working with cable operators to sign up more.
Sky also confirmed plans to introduce pay-per-view channels for sports events and movies by the end of the year.
However, no comment was made about the Restrictive Practices Court investigation which has now been called to examine broadcast deals involving Premier League football matches and both Sky and the BBC.
Under existing arrangements, the Premier League is sold exclusively to Sky and the BBC for five years and promised for a further five if they can match any other broadcaster’s bid.
This significantly restricts competition, Fair Trading director general John Bridgeman believes: “By selling rights collectively and exclusively to the highest bidder on behalf of its members, (the League) is effectively acting as a cartel.”
Nor would Sky comment further on the Office of Fair Trading review already underway. This deals with Sky’s programme contracts with cable operators and is unlikely to be concluded before May.
Meanwhile, the debate about amendments to the Broadcasting Bill concerning TV sports coverage moved to the House of Lords yesterday (Tuesday). Peers are expected to support calls for restrictions to protect terrestrials’ right to screen top sports events.
Sky has unveiled a new, small charcoal grey receiving dish – the Compact Dish – to reduce viewer resistance to satellite TV because of existing dish size and colour.
