Cable Forum - View Single Post - Mandatory NTL Phone Service for TV Customers

altis · 08-08-2005, 14:00

This all comes about because of the position of Sky. Not only do they distribute the channels by satellite but they make (or commision) the content.

NTL would simply not be able to offer a TV package without the Sky channels. Sky know this and can charge them arms and legs to be able to do so. In order to make a normal profit, NTL would have to charge more than Sky do for their package. But they can't 'cos no one would buy it. Ergo, NTL only make a small profit on the TV package.

They have to get their money somehow and can make a larger margin on the telephone service. So, the two are tied together.

IMHO, the only way to sort this out is for legislation to force Sky to split into two halves - content and distribution. And I don't think that's likely in the near future.

08-08-2005, 14:00	#6
altis Inactive Join Date: Jun 2003 Location: Warrington ntl:81304 Altitude: 12m (and falling) Posts: 4,499	Re: Mandatory NTL Phone Service for TV Customers - Discuss This all comes about because of the position of Sky. Not only do they distribute the channels by satellite but they make (or commision) the content. NTL would simply not be able to offer a TV package without the Sky channels. Sky know this and can charge them arms and legs to be able to do so. In order to make a normal profit, NTL would have to charge more than Sky do for their package. But they can't 'cos no one would buy it. Ergo, NTL only make a small profit on the TV package. They have to get their money somehow and can make a larger margin on the telephone service. So, the two are tied together. IMHO, the only way to sort this out is for legislation to force Sky to split into two halves - content and distribution. And I don't think that's likely in the near future.