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April 2, 2010

Pay TV ruling may not work

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by David Allen

Now that the dust has settled following Ofcom’s announcement on pay TV, industry experts have had time to go over the ruling and have found that both BT Vision and Virgin Media are not likely to pass on the wholesale price changes for Sky Sports 1 & 2, to their customers.

The main reason for this is BSkyB’s intention to appeal against the Ofcom decision, which means that any changes will not be introduced until the legal challenge has been rectified one way or another.

Currently the Ofcom ruling will force BSkyB to sell the sports channels’ content to its rivals at a price reduced by 23.4 per cent.

It is even possible that BSkyB may use the appeal time to push up prices.

This would counteract some of the revenue lost through the wholesale price reduction.

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