Pubs urged to act over Ofcom investigation

MP John Grogan is urging licensees to write to media regulator Ofcom about Sky's pricing policy, following an announcement that it will investigate the pay TV industry.

The media watchdog is launching the inquiry after receiving a submission from BT, Setanta, Top Up TV and Virgin Media.

Mr Grogan said: "Today's announcement provides a big opportunity for pubs to put their concerns about Sky's pricing policy for premium sports directly to the regulator.

"The fact that Sky's shares fell sharply on the announcement is an indication of how seriously the markets treat this investigation.

"For the first time in a decade, there is a chance of getting some good old competition into the market for pay TV in pubs and clubs.

"I would urge licensees to write with their views and opinions directly to Ofcom."

In response to the announcement of the investigation, a Sky spokesman said: "The marketplace for entertainment and communications services is fiercely competitive and changing fast.

"BT, Top Up TV and Setanta all have a commercial interest in preventing Sky from increasing customer choice by developing a new pay-TV service.

"Recent events have also drawn attention to the fact that cable is a closed network with substantial protections.

"In any market investigation, we'd expect Ofcom to look at the physical and legal barriers and business practices that shield Virgin Media from true competition and prevent consumers from enjoying lower prices in broadband and telephony and greater innovation and choice in television."

For more information visit: http://www.ofcom.org.uk