Ofcom has linked Sky's plans for a pay service on DTT (Picnic) to its wider investigation into the UK market for pay-TV, announcing on 13th May that it will issue its next statement on both issues simultaneously by the end of the summer. This is the first time the regulator has indicated that it is merging its consideration of Picnic with that of the wider pay-TV market
The BBC-ITV Freesat venture, launched on 6th May, is the public service response to Sky’s free satellite service. Once fully up and running in 2009, Freesat aims to match Sky with 200 digital TV channels in standard definition (SD), and surpass Sky with extra channels in High Definition (HD), plus the facility to offer iPlayer and Kangaroo
Sky Q3 FY 2008 results confirm the strength of the core pay-TV business, where the marketing strategy is now focused on subscriber quality rather than pure numbers. Sky+ boxes continue to fly off the shelves, while weak HD and Sky Multiroom sales call for attention in fiscal 2009
The Digital Dividend resulting from analogue switch-off and digital switchover (DSO) is shaping up into Ofcom’s spectrum sale of the century. It comes at a time when the TV broadcasting industry is coming to see the progress from standard definition (SD) to high definition (HD) as fundamental a step change in broadcast picture quality as was many years ago the shift from black and white into colour. This report examines the Ofcom proposals, the financial costs to the commercial PSBs and the implications of Sky’s Picnic proposals for the successful achievement of Ofcom’s plan
Broadband market growth continues to fall and was below 20% for the first time in Q4 2007. Household penetration hit 56%. BSkyB dominated net additions, increasing its market share to 7.8% after 18 months of operation
This report examines whether Sky has grounds to appeal the decision by the Competition Commission requiring Sky to partly divest its ITV stake. The deadline for Sky's decision on appeal is 25th February. Bearing in mind that the CC has a good track record on fighting appeals, this report identifies two potential grounds for appeal that could prove fruitful for Sky to appeal. If Sky does appeal, and we suspect it will, the uncertainty weighing on ITV's share price will continue for some time yet
Sky's Q2 results show continuing strong growth across all parts of its multi-product business, with bumper product sales, up by almost a third year-on-year
This report considers recent activity concerning the radio sector’s Digital Audio Broadcasting (DAB) platform and examines the implications, particularly in view of the recent establishment of a government working group examining the future of digital radio, and given weak consumer acceptance of DAB. It concludes that overcapacity of DAB spectrum is an issue that will only be exacerbated by the planned launch of a further DAB national multiplex by Channel 4 in 2008
One response to the growth of the satellite and cable households has been for terrestrial broadcasters to launch their own digital channels. These channels are beginning to absorb significant fractions of the total programming budget and in this report we look at the implications for the parent broadcasters. We examine E4, Channel 4’s main satellite entertainment channel, showing that it is likely to remain a drain on the parent for many years to come. Rather than ‘strengthening the brand’ of terrestrial broadcasters, which is the reason normally given for diversification into satellite channels, our research shows that E4 and other services do nothing for the parent company and divert programming expenditure that would otherwise be usefully spent on the terrestrial service.
Sky's continued excellent performance has attracted favourable comment in the weeks since its half yearly results. But much of the commentary missed some critical points. The analysts did not question Sky's assertions that it was successfully targeting high value customers. Actually, the last half-year saw a fall in the numbers taking the top-priced package. Similarly, few commentators noticed that despite the favourable comments in the results announcement, interactive revenues actually fell last quarter. The steepest rate of decline was seen in betting, which a year ago was going to be application that formed the core of Sky's interactive ARPU. Similarly nobody seemed to have noticed that Sky's overall share of TV viewing declined in the quarter, despite the addition of two hundred thousand new subscribers.
According to the Financial Times (27/03/2002), the European Commission is planning ‘to clamp down on the cost of calling mobiles’ and issue ‘tough new rules’, which ‘would make it easier for national telecoms regulators to force mobile phone companies to reduce excessive call termination charges’. According to our research, this is an exaggerated assessment: the likeliest outcome would be a Commission recommendation on ‘best practice’ guidelines, rather than new rules. Our research also shows that the pressures from NRAs on MNOs to lower mobile termination charges are highly uneven in the top three markets: they are most acute in the UK (predictably, given the pro-consumer orientation of Oftel), less significant but nevertheless present in Italy, and non-existent in Germany. Thus, if the UK Competition Commission endorses Oftel’s proposed charge cap in its forthcoming ruling, we can expect the four leading UK MNOs to lose about £880 million in revenues for the 2002-2006 period, with the annual reduction in 2002-2003 estimated at about £265 million.