Ofcom looks into Sky News move
The loss of Sky News in millions of Freeview households has emerged as an issue in BSkyB's discussions with Ofcom about launching a pay-per-view service on digital terrestrial television.
Ofcom has asked Sky for more information on its DTT pay-TV plans, pushing back the start of the media regulator's official consultation on the proposals.
This delay deals a serious blow to Sky's hopes of launching the pay-TV service this summer in time for the start of the Premiership football season in August - when rival broadcaster Setanta starts offering Premiership matches via DTT for £10.99 a month.
Sky News would be put behind a pay-TV wall as part of Sky's plan to launch a DTT subscription service later this year, leaving BBC News 24 as the only UK news channel available in more than 10m Freeview homes.
The other UK rolling news service on Freeview, the ITV News Channel, closed at the end of 2005.
Following a review of the initial submissions from Sky and National Grid Wireless, which holds the multiplex licence that carries Sky's channels on Freeview, Ofcom has requested "additional information" before launching its official consultation.
Ofcom has, however, denied reports that a decision had already been made refusing BSkyB permission to change the terms of its broadcast license.
"There are discussions going on about this but we are miles away from taking any decision," the Ofcom chief executive, Ed Richards, told MediaGuardian.co.uk.
Ofcom is looking at three main aspects of Sky's DTT pay-TV proposal. The first will look at the modification necessary to NGW's license to change the number of channels offered.
The regulator is also considering Sky's proposed changes to its channel line-up on DTT, including programming, names of individual services and issues surrounding plurality of news.
News plurality also emerged as a potential issue last month when Ofcom referred the results of its public interest test on Sky's acquisition of a 17.9% stake in ITV to the secretary of state.
The third area Ofcom is looking at is issues around the mp4 technology Sky wants to use in its DTT set top boxes.
These include incompatibility with current Freeview/DTT set top boxes and the overall effect on consumer confidence in digital switchover.
Sky aims to use mp4, a compression technology, to make the three channels currently available on Freeview - Sky News, Sky Three and Sky Sports News - into four channels for its DTT subscription service.
However, the use of such technology means customers will have to buy a new set-top box that includes the relevant conditional access software and mp4 decoder.
It is thought that Sky's initial four-channel DTT subscription lineup could be based around programming from Sky One, Sky News, Sky Sports 1 and Sky Movies 1.
"BSkyB and NGW have submitted information to Ofcom," said the regulator.
"Additional information is required before the formal application process can begin. Ofcom has asked the parties to provide this information.
"When Ofcom has received the information, Ofcom plans to launch a consultation on the proposals."
"Our proposals are designed to bring increased choice and competition to the DTT platform," a Sky spokesman said.
"We have submitted our application to Ofcom and we are in discussions about next steps."
Mark Sweney
Tuesday May 15, 2007
MediaGuardian.co.uk
© Guardian News and Media Limited 2007
The loss of Sky News in millions of Freeview households has emerged as an issue in BSkyB's discussions with Ofcom about launching a pay-per-view service on digital terrestrial television.
Ofcom has asked Sky for more information on its DTT pay-TV plans, pushing back the start of the media regulator's official consultation on the proposals.
This delay deals a serious blow to Sky's hopes of launching the pay-TV service this summer in time for the start of the Premiership football season in August - when rival broadcaster Setanta starts offering Premiership matches via DTT for £10.99 a month.
Sky News would be put behind a pay-TV wall as part of Sky's plan to launch a DTT subscription service later this year, leaving BBC News 24 as the only UK news channel available in more than 10m Freeview homes.
The other UK rolling news service on Freeview, the ITV News Channel, closed at the end of 2005.
Following a review of the initial submissions from Sky and National Grid Wireless, which holds the multiplex licence that carries Sky's channels on Freeview, Ofcom has requested "additional information" before launching its official consultation.
Ofcom has, however, denied reports that a decision had already been made refusing BSkyB permission to change the terms of its broadcast license.
"There are discussions going on about this but we are miles away from taking any decision," the Ofcom chief executive, Ed Richards, told MediaGuardian.co.uk.
Ofcom is looking at three main aspects of Sky's DTT pay-TV proposal. The first will look at the modification necessary to NGW's license to change the number of channels offered.
The regulator is also considering Sky's proposed changes to its channel line-up on DTT, including programming, names of individual services and issues surrounding plurality of news.
News plurality also emerged as a potential issue last month when Ofcom referred the results of its public interest test on Sky's acquisition of a 17.9% stake in ITV to the secretary of state.
The third area Ofcom is looking at is issues around the mp4 technology Sky wants to use in its DTT set top boxes.
These include incompatibility with current Freeview/DTT set top boxes and the overall effect on consumer confidence in digital switchover.
Sky aims to use mp4, a compression technology, to make the three channels currently available on Freeview - Sky News, Sky Three and Sky Sports News - into four channels for its DTT subscription service.
However, the use of such technology means customers will have to buy a new set-top box that includes the relevant conditional access software and mp4 decoder.
It is thought that Sky's initial four-channel DTT subscription lineup could be based around programming from Sky One, Sky News, Sky Sports 1 and Sky Movies 1.
"BSkyB and NGW have submitted information to Ofcom," said the regulator.
"Additional information is required before the formal application process can begin. Ofcom has asked the parties to provide this information.
"When Ofcom has received the information, Ofcom plans to launch a consultation on the proposals."
"Our proposals are designed to bring increased choice and competition to the DTT platform," a Sky spokesman said.
"We have submitted our application to Ofcom and we are in discussions about next steps."
Mark Sweney
Tuesday May 15, 2007
MediaGuardian.co.uk
© Guardian News and Media Limited 2007
