Ridiculous of Ofcom to command SKY to cut prices

Mark Littlewood comments on Ofcom s demand that SKY sell SKY Sports 1 and 2 for less than their current price

Mark Littlewood, Director General of the IEA said:

“It is ridiculous for a regulator to believe that they can set exactly the right price at which sports channels should provide their service. The more genuine competition there is in the television market the better it is for consumers.”

“This demand is bad news for investment in English football and other sports, and bad news for consumers who will lose out over the long term. Setting an artificially low price will inevitably damage the quality and coverage of sport in the future. It is also likely to make competitive entry into the market more difficult. ”

“This pronouncement comes at the end of a three-year inquiry. It is disappointing that a government-funded regulator spent so long looking into the matter only to make a recommendation that will damage the public interest in the long-term.”

“Those who find the present prices for SKY unattractive or unaffordable at a domestic level, still have the option of going to any one of thousands of pubs and bars to watch sport. This effectively makes sport free to view anyway and the quality is maintained by the company’s ability to charge at a domestic level.”

Invest in the IEA. We are the catalyst for changing consensus and influencing public debate.

Donate now

Thank you for
your support

Subscribe to
publications

Subscribe