Saturday, October 24, 2009

Branson attacks Murdoch's pay-TV dominance - 23rd October 2009

Richard Branson, founder of the Virgin Group, has attacked Rupert Murdoch's dominance, through BSkyB, of the UK's pay television market.

In a Financial Times article today, Rein in Sky and offer the consumer a choice, Branson likens BSkyB to British Airways in 1990, when the airline held exclusive rights to flying between London's Heathrow airport and the US.

His intervention is clearly designed to put pressure on Ofcom, the media regulator, which has been consulting on its plan to force BSkyB to offer its premium channels to rivals to increase competition in the pay-TV market.

Virgin Media, in which Branson's Virgin Group holds a 6.5% stake, has led the regulatory challenge to BSkyB alongside other subscription rivals.

BSkyB responded by saying the comparison with BA was "woefully wrong" because consumers appear satisfied with its pay-TV service.

Ofcom's final decision is expected early next year.

Media Man Australia Profiles

Richard Branson

Virgin Media

Virgin Enterprises Limited

Rupert Murdoch

News Corporation

Television

Broadcasting

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*Media Man Australia director and founder, Greg Tingle, holds shares in Virgin Blue

*Media Man Australia does some b2b business with both Virgin and News Corporation, the details of which are commercially sensitive in nature