Industry divided on prospects of Sky separation

摘要

Financial analysts and competition lawyers were this week divided on the likelihood that BSkyB would be forced to separate its content and distribution businesses, as demanded by four rival players in the UK pay-television sector. As part of its review of the market, Ofcom last week published a joint submission from BT, Virgin Media, Setanta Sports and Top Up TV which supported their request that the regulator intervene. The group, dubbed the "Gang of Four" by BSkyB, claim that the market does not offer effective competition and that BSkyB has a "gatekeeper" status that is not in the best interests of consumers or of competition. "Sky enjoys mutually reinforcing competitive advantages upstream (content acquisition) and downstream (distribution and retailing)," says the submission. "Due to the current structure of the market, these advantages cannot be matched by competitors and thus make Sky the gatekeeper of the UK pay-TV industry and allow it to manage competition in pay TV to the ultimate detriment of consumers."