Darroch warns of threats to pay-TV content investment

In a speech at television industry conference MIP TV, Darroch called said legislation passed last week by the UK government to tackle piracy “should make a big difference”. But he said the legislation was only required because “not all ISPs (Internet Service Providers) were prepared to play ball” in tackling the problem without government intervention.

He warned that new players in media distribution, including device manufacturers, phone companies, and online aggregators could undermine the value of content by being prepared to retail it at the lowest possible cost in order to earn profits elsewhere, such as through the sales of hardware broadband connections.

Darroch also attacked UK regulator Ofcom for “distorting” the market with its recent order that Sky must wholesale its premium channels at regulated prices to competitors.