:: 31/03/2010

United Kingdom - Ofcom allows introduction of Sky's Picnic service on DTT platform

Ofcom has issued a statement that will allow the broadcaster Sky and the broadcast network operator Arqiva to launch pay services on the DTT platform.

Sky had previously announced its interest in launching such services known as 'Picnic'.

The process to launch such services can begin immediately with the intention that the new services can be made available to viewers in August for the next Premier League football season.

However, the launch of services is conditional on Sky making its services, Sky Sport 1 and Sky Sport 2 available to other platform operators in standard-definition at a wholesale price set by Ofcom. In addition, Sky must also make movies available to other platform operators although Ofcom has not regulated the wholesale price.

According to Ofcom, such measures will be of particular benefit to viewers on the DTT platform who will be able to access new services and content.

It believes in the need for such intervention given that Sky uses its market power to limit the wholesale distribution of its premium services which, in turn, restricts fair and effective competition from other platform operators.

Source: Ofcom statement