Rapture loses EPG charges appeal

A competition appeal tribunal today ruled in favour of Sky in a dispute over the amount it charges channels.

Rapture TV had appealed against a decision by Ofcom that the amount it had to pay Sky was fair.

In a long-running dispute Rapture has argued Sky charges it too much for a place on the electronic programme guide.

The broadcaster's fees contribute towards development and running of its EPG and satellite platform.

The appeal tribunal published its verdict today, following a hearing in December, and said Ofcom's original decision had been correct.

Members noted that the appeal had "raised some important points of principle" on communications regulations and dispute resolution.

It was also "commendable" that Rapture's lawyers took the action free of charge because they believed it was in the public interest, they said.

However, the tribunal ruled: "Rapture’s submissions are that because it is a new, start-up channel with a relatively small audience and lower revenues than established or larger channels it ought to be entitled to a lower EPG charge, at least in its initial years of operation," the members said.

"Rapture’s approach would, in effect, mean that any new entrant or small broadcaster would be subsidised to some extent either by Sky (as the platform provider) or other established or larger channels operating on the same platform.

"In addition it submits that it is entitled to a lower EPG charge because it is an innovative channel which derives less benefit from the Sky platform than do other channels and that the Sky platform derives benefit from including Rapture on it," the ruling continued.

"The fact that Rapture’s programming appeals only to a limited proportion of those television viewers is a matter for Rapture and its choice of business plan, rather than a matter for Sky."

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