Ofcom confirms pay TV investigation

Ofcom has confirmed that it is undertaking a review of the UK's pay television industry at the request of BT, Setanta, Top Up TV and Virgin Media.

The firms have asked the media regulator to consider making a market reference to the Competition Commission regarding Sky's dominance in the industry.

In a statement, the regulator said: "After careful consideration, Ofcom has today announced that it will investigate the pay TV market, including obtaining information from market participants. Following this assessment Ofcom will decide whether to make a market reference to the Competition Commission. Ofcom will also consider whether any concerns would be better addressed using sectoral powers or the Competition Act 1998.

"Consumer groups including the Ofcom Consumer Panel and the National Consumer Council have also expressed concerns to Ofcom about one aspect of the pay TV market: the loss of BSkyB channels on Virgin Media’s pay TV platform.

"Separately, BSkyB has announced a proposal to launch a new pay TV service on the DTT platform, based on new set-top box specifications. On receipt of a licence application, Ofcom would consult on whether to approve the licence variations needed for such a service. In the meantime, the implications of the possible entry of BSkyB into the pay DTT market, including impact on consumers and emerging competition, will be part of the market investigation announced today."