Quote:
Originally Posted by Maggy J
OFCOM is set up to protect the media consumer and prevent a Media Monopoly by any one company.Considering they have no teeth for the job I reckon they provide as good a service as they can... 
Saying which I'll believe this story when it actually happens.  |
How do Sky have a monopoly Maggy? They neither have all the Premiership football nor keep the content to themselves being required by law to sell it onwards. It's purely the pricing that's the sticky part.
---------- Post added at 14:16 ---------- Previous post was at 14:12 ----------
Quote:
Originally Posted by Andrewcrawford23
but can you prove sky can not produce quailty material with less money? unoless you have access to sky bank accoutn then the truth is none of know, and from wha ti r4ead of ofcom reports sky have been over pricing for a while even there own customer the prices ofcom want ot set maybe a little low but sky will still makea good profit but sky want max profits and that why they oppose and htey also dnt want otehr havign access and to undercut them.
the only point i agree in is that sky investment ina product should get return like hd but it has now gotten a return and more so it time it regulated so other can have access mean the customer can choose wher ethey get there content from (i dnt think 3d should be regulated until 2012 at the earilst probally more 2014)
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We know this because Sky are a PLC and as such required to produce accounts 4 times a year.
I'm not sure if you've read Ofcom's plans but they consist of the product becoming 'retail minus'. Whatever Sky charge their customers they have to charge VM / BT etc that price minus an Ofcom adjudicated sum. How exactly will this reduce Sky's overcharging of their customers? All it will do, to my mind, is improve the profits of VM and BT and actively encourage Sky to spend
less on their production and content as the less they spend while keeping their prices the same the higher their profits will be.
Just to make a point Virgin Media actually have a better gross margin % than Sky do and a higher EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) relative to revenue.
I'm not sure how impoverished you or anyone else think Virgin Media are but that rather sweet Operating Cash Flow / OCF number that Virgin pop up with here and there does actually mean just that. VM make more money than Sky do but, like most cable companies, bury the earnings amidst various write-offs to improve the tax situation. Their debt hasn't been paying itself off at a rapid rate these past several months, indeed they feel good enough to go ask for another 2 billion GBP in bonds.