UK media regulator Ofcom has launched a supplementary consultation over whether pay-television broadcaster Sky’s demand that rival operators supply key sports rights in exchange for its own sports content “would prejudice fair and effective competition”.
Ofcom is carrying out a review into the wholesale must-offer obligation it imposed on Sky which requires it to provide wholesale access to its Sky Sports 1 and 2 channels for competitors.
Following initial responses through the consultation, Ofcom said it has now identified a specific matter that it will investigate further with stakeholders – Sky’s insistence on reciprocal supply of key sports content.
Ofcom said Sky has indicated that “its concern about reciprocity of supply is not a recent development and is not linked to BT’s emergence as a significant competitor to Sky in the past few years.” Ofcom therefore believes it is likely that Sky would pursue similar terms with anyone that has acquired, or may acquire, key sports rights in the UK market.
The development comes after John Petter, head of consumer for telco BT, told a Broadcasting Press Guild lunch this month that current wholesale arrangements were inadequate, claiming sports fans want access to the full Sky Sports package, not just two channels. Ofcom is set to outline its assessment of the pay-television wholesale must-offer obligation later this year.
Earlier this month, the regulator rejected a call from BT, which operates pay-television broadcaster BT Sport, to include a full investigation into the country’s pay-television market as part of Ofcom’s ongoing digital communications review.