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BSkyB set for massive fight with Ofcom regulator

BSkyB is a today looking at a potential legal battle with media regulator Ofcom which has the company firmly in its sights. Surprisingly, BSkyB looks set to be the main casualty of the collapse of Setanta as the regulator looks to expand the media base for pay-per-view TV and premium packages such as sports and movies.

Ofcom has put forward a suggestion that BSkyB offers to sell key channel subscriptions to competitors at only two thirds of the price which BSkyB is currently charging its own customers. This would be commercial suicide for BSkyB which would then be forced to offset the cost to its own customers to retain its subscription-based. This is a company which has invested billions upon billions of pounds into sports, movies and other pay-per-view and subscription-based TV. Nobody was complaining when the Football Association took in billions of pounds for its sports rights but now the company has become too big it seems Ofcom is looking to make significant changes.

BSkyB is set to take Ofcom down the legal route and challenge the latest recommendation although how successful the company will be in the medium to longer term remains to be seen. There are certainly changes afoot in the UK media sector.

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