31 Mar 2010Sky ordered to cut football coverage costs

Football Clubs News | Football Sponsors/ Sponsorship and Media

Broadcaster BSkyB has been ordered by industry watchdog Ofcom to reduce the prices it charges rivals to carry sports channels Sky Sports 1 and 2.

Ofcom has told the company it must cut the wholesale cost of its flagship stations by 23.4 per cent to a monthly £10.63 per subscriber. The regulator says the current arrangement is not conducive to fair competition in the market.

The Guardian reports Sky's chief executive Jeremy Darroch as saying that the body had got the decision "badly wrong", adding: "It's not, in my view, the job of regulators to set prices in free markets unless there's clear evidence of breach of law."

It must also provide rivals such as Virgin Media and BT Vision with high-definition versions of its channels, although the company says it intends to appeal against the decision.

Earlier this month, Sky announced it would launch its new 3D sports service by televising the clash between Manchester United and Chelsea on April 3rd.

Written by Terry Mitchell

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