Ofcom has set a wholesale price of £10.63 for each of Sky Sports 1 and 2, when sold on a standalone basis, which is 23.4% below the current wholesale price to cable operators.

Most consumers currently buy packages which include Sky Sports 1 and 2 and the wholesale price for this service bundle has been reduced by 10.5% to £17.14.

Ofcom has given conditional approval to Sky and Arqiva’s request to offer pay TV services on digital terrestrial TV (known as “Picnic”).

Approval of Picnic is subject to Sky implementing a wholesale deal under the supply obligation for Sky Sports 1 and 2. In addition, if Sky decides to offer movie channels on digital terrestrial TV then those channels must also be offered to other digital terrestrial TV operators.

Ofcom is consulting on its proposed decision to make a reference to the Competition Commission asking the Commission to address concerns regarding the sale and distribution of subscription video-on-demand premium movie rights (but which cannot be addressed fully using Ofcom’s powers).

Sky must offer to wholesale high-definition versions of Sky Sports 1 and 2. HD is a relatively new innovation. To help to promote future innovation Ofcom has not set wholesale prices for the HD channels but requires them to be offered on fair, reasonable and non-discriminatory terms.

Story provided by Business Financial Newswire