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UK pay-per-view TV market in major shakeup

An announcement from Ofcom this week could signal the biggest shakeup in the UK pay-per-view TV market for over 20 years. It is believed that Ofcom will insist that Sky reduces the price it charges competitors to take premium content such as Sky Sports and Sky Movies to deliver to their own customers. This will allow the likes of BT and Virgin to attack the UK pay-per-view market with BT already primed to introduce a service which will undercut Sky TV by over 30%. It is also believed that Virgin is well down the road towards a similar price sensitive offer itself which again would be significantly below that which Sky TV currently charges viewers.

This has all come about because of Sky TV's growing domination of the UK sporting arena but the company has also pointed out it has invested billions of pounds into the sector and has effectively built the market itself. While there is no doubt that Sky TV has been the prominent force behind the massive growth in pay-per-view TV in the UK there are some who believe that prices should be reduced, hence the involvement of Ofcom.

Sky is unlikely to sit back and accept any potential reduction without a fight and we can expect this saga to drag on for many months to come.

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