11 Jun 10

Virgin appeals Ofcom's Sky pricing model

Virgin Media has launched a legal challenge against Ofcom's wholesale must offer (WMO) model for not including all of Sky's premium content channels.

According to a legal filing at the Competitions Appeal Tribunal, the cable operator believes that Ofcom has "failed to consider relevant matters" by excluding Sky Sports 3, Sky Sports 4 and the Sky Movies channels from its pricing model. The company is concerned that the WMO system fails to set a pricing structure for bundles of Sky Sports 1 and/or 2 with Sky's other sport channels or the Sky Movies channels. The loophole could potentially allow Sky to get around Ofcom's pricing system by bundling Sky Sports 1 and 2 with other channels. Virgin Media has further challenged the calculation methodology used by Ofcom for setting its new wholesale pricing ratecard. In March, Ofcom ordered Sky to offer Sky Sports 1 and 2 to rival operators for £10.63 per subscriber per month for each channel on a standalone basis, representing a reduction of 23.4%.