So Sky has finally won its five-year battle with rivals and regulators over the latter’s hated “must offer” rule. Under the regulation, Ofcom required it to offer its sports channels at a discounted wholesale price to rivals. The aim was to stop it abusing its dominant position. The basis for Ofcom’s change of heart is that the market has changed; consumers have a much wider range of platforms from which to sample their sports poison.
Ofcom has ordered Sky to behave itself in future negotiations with rivals – but did it even need to? The aggressive move into sports rights by one of those platforms – BT – has smashed the effective monopoly Sky enjoyed over content, internet-savvy football fans have long been able to find places to watch for free, and American Football fans can see any games they want by subscribing to the league’s Game Pass.
Others may look at such developments with interest. Sky remains very powerful but for the first time in years it is just possible to see it as vulnerable.
