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BT aims to undercut Sky on sport | BT aims to undercut Sky on sport |
(about 1 hour later) | |
BT says it is ready to enter a price war with Sky over the price charged for fans to watch premium sports events, including football and cricket, on TV. | BT says it is ready to enter a price war with Sky over the price charged for fans to watch premium sports events, including football and cricket, on TV. |
The telecoms firm is awaiting the outcome of an Ofcom probe, examining whether Sky must drop the wholesale price it charges rivals for content. | The telecoms firm is awaiting the outcome of an Ofcom probe, examining whether Sky must drop the wholesale price it charges rivals for content. |
BT Vision would aim to charge about £15 a month for Sky Sports 1, about £10 cheaper than Sky currently charges. | BT Vision would aim to charge about £15 a month for Sky Sports 1, about £10 cheaper than Sky currently charges. |
The outcome of the investigation by the regulator will be known in March. | The outcome of the investigation by the regulator will be known in March. |
A spokesman for BT told the BBC that there would be a benefit to the viewing public as they would be getting more choice. | A spokesman for BT told the BBC that there would be a benefit to the viewing public as they would be getting more choice. |
'Effective competition' | 'Effective competition' |
The Ofcom inquiry into pay TV is also looking at the price Sky charges rivals for access to Sky Movies. | The Ofcom inquiry into pay TV is also looking at the price Sky charges rivals for access to Sky Movies. |
If Ofcom rules that Sky must cut its wholesale prices it means that the likes of BT and Virgin Media could pass on to any price cuts to their customers. | If Ofcom rules that Sky must cut its wholesale prices it means that the likes of BT and Virgin Media could pass on to any price cuts to their customers. |
BT would look to introduce a new price structure from the start of the 2010/11 football season. | BT would look to introduce a new price structure from the start of the 2010/11 football season. |
When it launched its investigation in June, Ofcom said it believed "requiring Sky to make its premium channels available to other retailers on a wholesale basis is the most appropriate way of ensuring fair and effective competition". | When it launched its investigation in June, Ofcom said it believed "requiring Sky to make its premium channels available to other retailers on a wholesale basis is the most appropriate way of ensuring fair and effective competition". |
BT and Virgin have struggled to make a dent in Sky's viewing figures. | BT and Virgin have struggled to make a dent in Sky's viewing figures. |
Sky has 9.5m subscribers, Virgin has 3.7m and BT Vision has 436,000. | Sky has 9.5m subscribers, Virgin has 3.7m and BT Vision has 436,000. |
Loss on packages | |
Virgin Media currently charges between £16.50 and £24 per month for Sky Sports 1 depending on a customer's TV package. | |
The firm - formerly known as NTL - said it made a loss on every sports package sold because of Sky's wholesale prices and also the need to remain competitive. | |
"Ofcom's proposals to cut wholesale prices for Sky Sports aren't about subsidising Sky's competitors," Neil Berkett, chief executive of Virgin Media, told the BBC. | |
He said it was more about "creating a competitive market", and that Ofcom had the means to "bring premium film and sport to millions more people at much lower prices". |