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October 2, 2008

Sky may have to learn to share


by David Allen

Sky could be bracing themselves for new rules when it comes to the distribution of their premium sports and movie channels.

This follows a report by the media regulator Ofcom into the whole pay TV sector.

There have been many complaints from Virgin Media, Setanta, Top Up TV and BT with regards to the power that Sky have over the Premier League football matches and the deal that they have made with some of the top Hollywood studios for Films.

It would stand to reason that any pressure on Sky to release their grip on this premium content is going to start a price war between the providers of pay TV content.

It is still too early to know exactly what Sky will do about this, after all they could supply whom they want with content and at the same time withdraw the content when it suits them, causing a situation which is damaging to the industry in a similar manner as the Sky and Virgin Media problem was.

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