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Virgin Media asks Ofcom to review Premier League live TV rights

tototoner

Staying Alert
Mar 21, 2004
29,387
34,059
not sure exactly what this means, what it is trying to achieve or who will benefit
from BBC

http://www.bbc.co.uk/news/business-29426570

and this is what sent out by Virgin Media internally


You may have seen media reports this morning that Virgin Media has asked Ofcom to open an investigation into the way that the Premier League sells live television rights in the UK.

This is the right action to take, for our customers and for our business. There is a strong base of evidence to support the case we are making.
Broadcasters secure the rights to broadcast Premier League football live on TV through an auction managed by the Premier League. The Premier League sells the rights on behalf of all of the individual clubs.

The total cost of live rights increased by 70% to £3.02bn at the last auction; these costs are being passed on to consumers, and so this ever increasing inflation in cost means consumers must pay more.

Under the current structure, there is widespread speculation that there will be another significant increase in the cost of live television rights when the next auction process starts – probably later this year. For Pay TV customers, this inevitably means even higher prices. That is why we felt it important to take this action.

The Premier League’s selling arrangements were accepted by the European Commission in 2006, although they raised competition law concerns. As part of this, the Premier League agreed to a number of time-limited ‘Commitments’ such as ensuring that no single bidder could acquire every package of rights and the release of more games. These commitments, which have now expired, were intended to promote competition.
We have asked Ofcom to review these commitments and the auction mechanism as we believe they have failed. The price of watching all Premier League games on TV is, on average, three times higher than for other top European Leagues. Also, Premier League viewers also get less for their money as only 40% of its matches are available for broadcast - compared to the other major European leagues where 100% are available.

We are asking Ofcom to make targeted changes to the mechanism by which live rights are sold, while preserving the benefits of joint selling of those rights. There is a window of opportunity now, before the next auction process begins, for Ofcom to review the effect of rising prices on viewers and football fans.

This is clearly now a matter for Ofcom. I will keep you updated on our progress.
 

Gassin's finest

C'est diabolique
May 12, 2010
37,355
87,831
But Virgin are just a service provider, rather than an actual broadcaster like Sky or BT. Unless of course that's Branson's next move... and this is a strategic attempt to improve sharing of Premiership/Champions League rights ahead of that.
 

tototoner

Staying Alert
Mar 21, 2004
29,387
34,059
But Virgin are just a service provider, rather than an actual broadcaster like Sky or BT. Unless of course that's Branson's next move... and this is a strategic attempt to improve sharing of Premiership/Champions League rights ahead of that.

Branson has no input to Virgin Media anymore, it's owned by US company Liberty Global who do want to get more into making as well as providing content

http://online.wsj.com/news/articles/SB10001424052702304607104579212142866822198
 

Geyzer Soze

Fearlessly the idiot faced the crowd
Aug 16, 2010
26,056
63,361
Seems like a bitter "we didn't get any rights" approach to me...
So who should ever get to challenge it then? Should Sky just have it for ever and a day and it never get looked into?

It needs reviewing from time to time for the good of the consumer and the good of the game. Nobody without an interest will ask for it to be reviewed, i don't see the problem
 

tobi

Clear Eyes, Full Hearts, Can't Lose
Jun 10, 2003
17,446
11,568
Seems like a bitter "we didn't get any rights" approach to me...

I'm sceptical of this too but they have no interest in buying sports rights I don't see what they gain from this.
 

WalkerboyUK

Well-Known Member
Jun 8, 2009
21,658
23,476
So who should ever get to challenge it then? Should Sky just have it for ever and a day and it never get looked into?

It needs reviewing from time to time for the good of the consumer and the good of the game. Nobody without an interest will ask for it to be reviewed, i don't see the problem

Sky bid for it, BT bid for it and BBC/ITV bid for it. Reality is, up until now Sky have always offered most money.
BT have taken CL & Europa out of Sky's hands from next season.

All that will happen if Virgin bid and win games is that they will increase their prices!

The big test is to see if Sky drop their Sports package price next year.
 

Geyzer Soze

Fearlessly the idiot faced the crowd
Aug 16, 2010
26,056
63,361
Sky bid for it, BT bid for it and BBC/ITV bid for it. Reality is, up until now Sky have always offered most money.
BT have taken CL & Europa out of Sky's hands from next season.

All that will happen if Virgin bid and win games is that they will increase their prices!

The big test is to see if Sky drop their Sports package price next year.
I don't think so, the more competition there is the more price competition there will be and it will be better for the consumer. Economics 1.0
 

WalkerboyUK

Well-Known Member
Jun 8, 2009
21,658
23,476
I don't think so, the more competition there is the more price competition there will be and it will be better for the consumer. Economics 1.0

But only if the likes of Virgin can supply to everyone...
If they can't then they are simply looking to take away from a supplier who can provide country-wide and therefore actually removing the option from the public.
Virgin don't supply where I live and, according to latest update, have no plans to do so!
 

Geyzer Soze

Fearlessly the idiot faced the crowd
Aug 16, 2010
26,056
63,361
But only if the likes of Virgin can supply to everyone...
If they can't then they are simply looking to take away from a supplier who can provide country-wide and therefore actually removing the option from the public.
Virgin don't supply where I live and, according to latest update, have no plans to do so!
Ah, well, here's where i back out since i have no idea about distribution of media content in the UK and how that works exactly.

One has to imagine that distrubution ability is taken into account.
 

Dundalk_Spur

The only Spur in the village
Jul 17, 2008
4,956
7,688
I actually can't see how breaking up the games has been in the public interest at all. Instead of one subscription two are three are needed which is a huge burden on the customer.

Thats why I now have none.
 

Stavrogin

Well-Known Member
Apr 17, 2004
2,361
1,475
I'm sceptical of this too but they have no interest in buying sports rights I don't see what they gain from this.

I think the idea is that with this bidding system the price of games just keeps going up and a company like Virgin, which distributes Sky and BT, will have to pay more and more to host those channels - passing those costs onto the consumer.

I have virgin but I don't bother with the sports because the price doesn't seem worth it - other people may switch to someone like sky who has the rights and also distributes (so it may be cheaper, I don't know).

They might want to get into broadcasting but it's probably more about football being one of the main things that attracts people to their service. If its cost keeps skyrocketing, their business (and the whole business model) will suffer.
 

Stavrogin

Well-Known Member
Apr 17, 2004
2,361
1,475
I don't think so, the more competition there is the more price competition there will be and it will be better for the consumer. Economics 1.0

Well not in this case. What's increasing is demand, so the more bidders the higher the price, the higher the cost to consumers.
 

tototoner

Staying Alert
Mar 21, 2004
29,387
34,059
I think the idea is that with this bidding system the price of games just keeps going up and a company like Virgin, which distributes Sky and BT, will have to pay more and more to host those channels - passing those costs onto the consumer.

I have virgin but I don't bother with the sports because the price doesn't seem worth it - other people may switch to someone like sky who has the rights and also distributes (so it may be cheaper, I don't know).

They might want to get into broadcasting but it's probably more about football being one of the main things that attracts people to their service. If its cost keeps skyrocketing, their business (and the whole business model) will suffer.
Sky sports is cheaper on Virgin platform

http://recombu.com/digital/news/virgin-media-sky-prices-sky-sports-1-5-season-ticket-bundle
 

kr1978

Well-Known Member
Aug 31, 2012
5,322
8,464
I don't think so, the more competition there is the more price competition there will be and it will be better for the consumer. Economics 1.0

Not true at all , this is a product of finite supply so as the bidding can continue to increase until the paying public as subscribers stop paying the ever increasing monthly fees. There is no alternative product than the PL for the vast majority of people who watch it.
 

kr1978

Well-Known Member
Aug 31, 2012
5,322
8,464
In this case Virgin is just trying to drive down what it has to pay Sky to be able to show their football and hiding it as altruistic consumer interest.
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
I think the idea is that with this bidding system the price of games just keeps going up and a company like Virgin, which distributes Sky and BT, will have to pay more and more to host those channels - passing those costs onto the consumer.

I have virgin but I don't bother with the sports because the price doesn't seem worth it - other people may switch to someone like sky who has the rights and also distributes (so it may be cheaper, I don't know).

They might want to get into broadcasting but it's probably more about football being one of the main things that attracts people to their service. If its cost keeps skyrocketing, their business (and the whole business model) will suffer.

You do realise you get BT sport for free with Virgin?
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
BT and Sky will probably subsidise the cost of the sports channels to the viewer. What they want to sell is broadband, that is why BT came into the market in the first place.
 
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