Quote:
Originally Posted by gizuk
Highly competitive is extremely subjective. Sky have built up a dominant position based on years of no competition. They have continually abused this dominant position to the detriment of customers and competitors. This is the reason OFCOM stepped in (eventually, and in my opinion FAR too late) and introduced the various rate cards that now exist.
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I think there is a difference between the availability of big ticket content such as sports and movies, and channels that have been available cross-platform for decades, and new products that have never been available outside of the Sky delivery platform, which is what Sky Atlantic is.
There is a reasonable expectation that Sky One will be universally available on pay TV precisely because it has been for a long time, the cable operator(s) have built business models around it in good faith and consumers have invested in equipment or contract tie-ins. Ditto sports and movies.
But it would be perverse to insist that Sky can't create its own exclusive branded products. Just as you can only buy Harrods branded goods from Harrods, so Sky should be allowed to develop new, premium services that are its own exclusive property to sell. It's not as if HBO shows didn't exist before Sky signed an exclusive carriage deal for them. Any other pay TV or terrestrial operator could have gone in and done what Sky did. But they didn't.
Sky is a commercial enterprise, it has shareholders who invest money so they can get a return. At present, Sky's judgement is that the best return on their investment in HBO programming is to use it as a means of attracting new customers to their platform, rather than retailing it through other carriers and trying to pick up higher viewing figures and ad revenues.