Digital, Interactive and Web TV

Controversy 1998/1997

• October 1998: BSkyB's £624m bid for Manchester United football team and stadium, as well as its £670m purchase of the live TV rights to the 20 Premier League Clubs, are referred to the Monopolies and Mergers Commission (MMC).
  • This is over concerns that large media companies are controlling too many rights to televise sporting events thus depriving most consumers TV access to the national sport. The counter argument, in respect of the Premier League, is that if each football club could negotiate then the few top clubs would cream most of the money, thus depriving the smaller clubs of income and investments. BSkyB currently owns 11.2% of the shares in MU. See above for the outcome. Carlton is in a similar position over its possible bid for Arsenal football club.
• August 98: Peter Rogers, the chief of the Independent Television Commission (ITC) warns digital service providers not to confuse consumers in their advertising.
  • His concern was that this could lead to deferred purchase and therefore collapse some of the players who had invested huge sums. He also warned providers over their policy of only offering consumers fixed packages of channels rather than personal choice.
• August 98: Flextech and Sci-Fi Channel Europe (controlled by Universal Studios) file a judicial review against the Independent Television Commission (ITC).
  • ITC had told the programme makers and the cable and satellite distributors to renegotiate their contracts to eliminate consumer Minimum Carriage Requirements (MCR) contracts that required consumers to subscribe to a large number of channels. The ITC's aim is to lower the cost of services and therefore hopefully encourage more subscribers. On 6 October 1998 the High Court ruled in favour of ITC. All existing MCRs should be reduced by 1 July 2000 and all new MCRs immediately.
• 1998: BBC launches free News 24 channel via analogue cable and some cable companies drop Sky News.
  • Sky News accuses BBC of using predatory pricing in using licence money to complete against commercial operators.
• Autumn 1997: Department of Trade and Industry (DTI) proposes a single regulatory body called Office of Communications (Ofcom).
  • The DTI is to issue a consultation document proposing that the Independent Television Commission (ITC) and Office of Telecommunications (Oftel) be merged into Oftcom, a single regulatory body for the whole industry. This is recognition that these two mediums are rapidly converging and that anomalies already existed. For example, Oftel was given responsibility for conditional access of digital TV, for interactive services including via digital TV, and for the control over the electronic programme guides. Oftel had upset the ITC when it criticised the outcome of the digital TV licences awards. The Consumers Association added their bit when they recommended that Oftcom should also include the BBC and the Post Office - now that would really make a super regulatory body.
  • July 1998: The new Labour administration appears to be favouring an umbrella body simply to set standards, leaving the existing regulatory bodies to enforce them. Eventually a new Broadcasting Act may be required to address the convergence of television, telephony and other mediums.

Back Up to Controversy Contents

JS

External Resources

1. See the Controversy Content page for a list of resources prior to 30 July 2000
2. Goodman, Matthew, 2000, New talks on Net and TV racing, Sunday Business, 20 July 2000.
3. See the full list of resources for this web site for other related resources.

Players: [Service (Delivery) Providers] [Content Providers] [Value Added Service Providers] [Transmission Companies]
[Hardware & Software Suppliers] [Regulatory & Standards Bodies] [Controversy]

[Digital TV Content] [Introduction] [Summary] [No. Customers] [US Scene] [European Scene] [Scene Elsewhere]
[Delivery Channels] [Players] [H/w & S/w] [EPGs] [Existing Services] [New Services] [Audience] [Disadvantages]
[Advantages] [Sceptics] [Advertising] [Financial Services]

[Mediums Overview] [SIM Report Mediums] [More Recent Developments] [Which to Use?] [Other Technologies]

[SIM Overview] [One to One Marketing] [Mass Customisation] [Interactive Mediums] [STEP Analysis]
 [SIM Executive Summary] [SIM Report] [SIM Project] [SIM Framework] [SIM Methodology] [SIM Illustrations] [SIM Links]

[Key Information & Resources] [Guest Contributions] [List of Support Topics] [What's On]

[Contact] [Company] [Disclaimer] [Privacy] [Legal] [Copyright Fair Use] [Feedback] [Publications]
[Publicity] [Why Ads?] [What's New] [What's Coming] [Technical Info]
 [Home]   [Site Search Form]     [For a Full list of Contents see the Site Map]