
Sky's chief operating officer Mike Darcey has said that a "culture of dependency" has led to various problems facing UK public service broadcasters.
Darcey told a conference hosted by the Institute of Economic Affairs that policymakers have fostered a negative culture that has shaped the "mindset and strategies of licensed broadcasters", and consequently constrained innovation.
"Even when the current downturn comes to an end, it is difficult to envisage long-term real growth in television advertising revenues. Inevitably, these pressures must feed through to what goes on the screen," he explained.
"We should consider why it is that so much of the commercial broadcasting sector has failed to move on. The reason is deeply rooted in the culture of the public service broadcasting system which binds the broadcasters together with those responsible for UK broadcasting policy.
"In this complex system of privileges and obligations, the fortunes of the terrestrial broadcasters have been reliant on winning the support of regulators and politicians. The consequence is a culture of dependency which shapes the mindset and strategies of the licensed broadcasters."
During the speech, Darcey also said that the government's recently revealed Digital Britain report is a suitable example of the problem.
He explained that relying on a "one-dimensional" model of sole advertiser-funding for PSBs may be suitable for an analogue-only industry, but it is not workable in a digital marketplace.
"It remains the case that UK broadcasting policy is geared almost exclusively around the free model. So it is no coincidence that the attitudes of the commercial PSBs should be so closely aligned with those of the people who can make or break their businesses," said Darcey.
"The focus of policymakers on advertising as the core means of funding public service content beyond the BBC has remained unshakeable despite the evidence of the sustained challenges facing the terrestrial broadcasters."
Darcey also revealed that Sky could be unwilling to invest in premium content if Ofcom forges ahead with its proposals to free up wholesale access to other providers.
"One of the many things that is remarkable about the proposals is the ease with which Ofcom feels able to undermine incentives for continued investment in high-quality content," he added.
"Ofcom seems to assume that Sky will just go on putting around £1.3 billion at risk in sports and movie rights every year, even though it has damaged our ability to make a reasonable return."
Last Friday, Sky chief executive Jeremy Darroch said that the regulator's plan "defies belief" and that Virgin Media and BT should not get a "reward at Sky's expense".


