At present, Virgin Media, Tiscali and BT are bound to pay Sky the princely sum of £23.50 for every customer on their books. However, early next year Ofcom is planning to cut this by a third to £16.50, on the grounds that Sky’s dominance of the pay TV arena is distorting the market.
Of course this spells a whopping cut to Sky’s revenue – and naturally they plan to challenge the regulation. But for us, should the reduction get passed at least, it looks like a result all round.
With a price reduction of that magnitude, providers will surely pass on the benefits to customers. Leaving us to enjoy cheaper Premier League football and movie premieres as well as more competitively priced broadband bundles. Roll on next year.
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