01/10/2014

Virgin Media has complained to Ofcom (Competition Act 1998) re way PL sells TV rights

Virgin Media has submitted a complaint to Ofcom under the Competition Act 1998 regarding the way the Premier League sells it's TV rights packages. They argue it results in "significant consumer harm" with PL fans paying far more than fans in other European countries.

This looks like a very interesting challenge. MUST has long argued that the auction of exclusive packages is anti-consumer (fans) and favours the monopoly rights owners.

To create real competition, which would benefit the fans (consumers), these exclusive TV rights package auctions should be prohibited so that the broadcasters have to compete on price & quality offered to the consumer. The consumer can choose on which channel (and at what price) they watch the game. A genuine competitive market should provide a ranges of prices and qualities = consumer choice

As it is they compete for exclusive packages in a highest bid auction & then can do, and charge, whatever they can get away with for what amounts to an exclusive monopoly product.

It seems extraordinary that Competition Law has been constructed (or more likely is being interpreted) in such a way that it should best serve the businesses (rights holders) rather than (and to the direct detriment of) the consumers!

One can only imagine this is the result of some extremely skillful lobbying? Anyone fancy a Rolex?

http://t.co/0aZOSkTqyN