Sky & TVNZ Cleared to Launch Igloo

WELLINGTON: The Commerce Commission has approved Sky and TVNZ’s joint venture Igloo, a new low-cost pay-TV service that is set to launch at the end of next month.

Completing its investigation into the JV, the antitrust regulator found that the pay-TV market will not be less competitive as a result of the service. It opened the investigation following complaints that it received that the venture had the potential to substantially lessen competition.

"Our role in this investigation was not to judge the level of competition in the market, but whether the joint venture would change the level of competition," said Dr. Mark Berry, the chair of the Commerce Commission. "When we looked at two possible future scenarios, one with TVNZ’s involvement in the joint venture, and one without, we found the level of competition was essentially unchanged."

"We also found that a number of other potential competitors may enter the market," he added.

Dr. Berry said that the Commission’s investigation did, however, highlight potential difficulties that any entrant would face in entering the pay-TV market.

Sky holds a 51-percent stake in Igloo, investing $12.75 million, while TVNZ invested $12.25 million for the reaming 49 percent.