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The rate card
c3pod4qp
Posts: 630 Forum Member
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I have seen much mention on this forum of the 'rate card' in relation to Virgin Media's (VM) purchase of Sky Sports/Movies. I know that the 'rate card' guarantees a fair price to VM (and others) for these services.
What are the chances that the 'rate card' will be abolished for some or all of Sky's Sports and Movies services in the medium or long term? I understand that Sky's basic channels used to be covered by the 'rate card' and that this protection was, at some point removed. We all know what happened on March 1st!:(:mad:
What are the provisions of the 'rate card' and what are the criteria for its' removal? Will Setanta's 46 live games break Sky's (football) monopoly (in OFCOM's opinion) and, thus, hasten its' removal?
I understand (from these forums and other sources) that approx. 800,000 VM subscribers subscribe to Sky Sports. If the 'rate card' was abolished, it would surely be suicidal for Sky to dramatically increase the wholesale cost (to VM) of Sky Sports (or remove the channels completely), thus denying them 800,000 X £18.00 X 12 = £172,800,000 (gross revenue; obviously, not all of this would go to Sky (and, for the pedantic, not all revenue would necessarily be lost (given the probable price elasticity of demand curve of this service))).
Any ideas?
What are the chances that the 'rate card' will be abolished for some or all of Sky's Sports and Movies services in the medium or long term? I understand that Sky's basic channels used to be covered by the 'rate card' and that this protection was, at some point removed. We all know what happened on March 1st!:(:mad:
What are the provisions of the 'rate card' and what are the criteria for its' removal? Will Setanta's 46 live games break Sky's (football) monopoly (in OFCOM's opinion) and, thus, hasten its' removal?
I understand (from these forums and other sources) that approx. 800,000 VM subscribers subscribe to Sky Sports. If the 'rate card' was abolished, it would surely be suicidal for Sky to dramatically increase the wholesale cost (to VM) of Sky Sports (or remove the channels completely), thus denying them 800,000 X £18.00 X 12 = £172,800,000 (gross revenue; obviously, not all of this would go to Sky (and, for the pedantic, not all revenue would necessarily be lost (given the probable price elasticity of demand curve of this service))).
Any ideas?
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I don't think that the Sports/Movies will come off of the rate card. If anything Setanta should probably go on the rate card! Sky still have the monopoly on Premiership based games as Setanta only have 46 matches and Sky have all the other cup matches etc as well.
I very much doubt this as Setanta is indivudual to both VM and Sky and are not a platform themself.
I may be wrong but I dont think Sky's basic channels where actually on the rate card, meaning they could withdraw them at any time!
I believe if you go into the ofcom archives Sky1 at least was part of a rate card and I remember seeing the licensing change. not sure about SSN and Sky News. This was in the early days when Sky1 was probably a stand alone in its format