Sky, Ofcom Reach Agreement on Sports Channels

LONDON: BSkyB has reached an agreement with Ofcom over the regulator’s controversial decision on the pricing of the platform’s sports channels for other operators, pending the resolution of its appeal lodged with the Competition Appeal Tribunal (CAT).

Last month, Ofcom announced that Sky would need to offer its sports nets—home to lucrative events such as the EPL—to rival platforms at a 23.4 percent reduction on the current wholesale price. Sky has been attempting to block enforcement of the ruling until the resolution of its appeal. With the deal between Sky and Ofcom, just three platforms—BT, Top-up TV and Virgin Media—are eligible for the wholesale rate set by Ofcom. However, each will pay rate card prices for the channels, with the difference between that and the wholesale price to be put into escrow until the conclusion of the appeal. 

“We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom’s decision," a Sky spokesman said. "We remain fully focused on our substantive appeal, which will be filed with the CAT in due course.”