Virgin Media has asked broadcast regulator Ofcom to open an investigation into the way that the Premier League sells the TV rights to its live football games.
The cable firm says the auction process is driving up prices for fans and causing "significant consumer harm".
It's quite a dilemma. The natural instinct of regulators is to have two competing Pay-TV broadcasters rather than a Sky monopoly. But on the other hand prices for consumers were cheaper under one broadcaster and the competition mainly benefits the rights holders rather than consumers, who, wanting to see every match, will subscribe to both BT and Sky. I'm not sure there's an easy solution thay doesn't involve restoring Sky's monopoly over the pay-TV sports market (which could lead to its own abuses).
Well you could maybe award the rights to platforms rather than broadcasters. So in its most simplistic form : 138 matches for satellite, 138 matches for cable, 138 matches for IPTV etc.
Similar type of arrangement exists in Italy for domestic Serie A rights.
I doubt that this will get anywhere. One move that would reduce the cost base immediately would be to mandate a FTA pack of say 20 top picks. The available quality of the remaining matches would be slightly reduced, some viewers would be satisfied with the FTA matches so demand might drop. However the frantic football community would soon see any drop as a temporary move. One thing's for certain any attempt at a single broadcaster would be disastrous for the game and would be avoided,
Once again, I reiterate I expect nothing to come of this. It might just delay things by a month or so, though which could make the issue election fodder.
The only way things will ever change is if those who complain about paying for football matches stop actually paying for football matches and cancel subscriptions. That clearly isn't happening though - and I suspect those who won't pay (but complain) probably still wouldn't be inclined to pay at a lower rate either.
My main issue with the rights is that they shouldn't be used as a loss leader - so general Sky subscribers shouldn't be contributing to the Sky Sports pot (whether they do or not I don't know) and BT phone/net customers shouldn't be paying more for their services to put money into the pockets of the Premier League.
Seems a syndicated discussion piece is in several of tomorrow's papers and on some websites, inferring a £4Bn price tag, and also indicating that Google/You Tube and Apple are potential new applicants, although they are discounted at the end. No real 'meat' to add in respect of packages and detail. However the March announcement of winners is back in the frame.
The only way things will ever change is if those who complain about paying for football matches stop actually paying for football matches and cancel subscriptions. That clearly isn't happening though
So the rise of grey-market viewing, use of 3rd-party receivers and subsequent legal wrangling isn't happening then?
2. The option of an 8pm Sunday slot could be offered, I've heard that the FA is keen to avoid the slot being dominated by fixtures from France, Italy and Spain internationally at the time, especially as it's primetime in the US. The value of the US rights to the FAPL is being questioned with England's poor WC2014 performance. NBC are reported to be concerned.
Have just read that this is now very much on the cards ....
Virgin Media has asked Ofcom to investigate the Premier League rights auction process, calling for Competition Act formal investigation.
... Ofcom has responded, and HAS opened an enquiry into the process
CW/01138/09/14
Complainant: Virgin Media Limited (‘Virgin’)
Complaint against: The Football Association Premier League Limited (‘PL’)
Case opened: 18 November 2014
Issue: Whether the object or effect (actual or potential) of the joint selling arrangements of the PL for live UK audio-visual media rights to Premier League matches is the restriction or distortion of competition in the UK and/or the European Union in breach of the Chapter I prohibition of the Competition Act 1998 (‘the Act’) and/or Article 101(1) of the Treaty on the Functioning of the European Union (‘TFEU’).
Relevant instrument: The Chapter I prohibition of the Competition Act 1998 (‘the Act’) and Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’).
Well all Dutch, French, German, Italian, Dutch, US and Australian games are televised (and in fact Sky is the major broadcaster for both German and Italian markets!!!)