News Analysis COMMUNICATIONS ACT
Get ready for wrangling and regulation
As the deadline for initial submissions to inform the next Communications Act passed this week, Broadcast takes a look at who wants what from Jeremy Hunt
BSKYB FREEING UP THE MARKET
Not surprisingly, Sky is keen to ensure that “content owners are free to choose how to distribute and monetise their intellectual property”, and wants the UK and EU to provide a “framework that enshrines choice and allows different business models to compete on the merits”. That issue is at the heart of
Sky’s dispute with Ofcom over its obligation to wholesale Sky Sports at a fixed price to pay-TV rivals, and is linked to chief executive Jeremy Darroch’s desire for “a balanced approach which ensures the incen- tives to invest in content are not sacrificed to promote investment in the shiny new
10 | Broadcast | 1 July 2011
pipes through which the content is to be carried”. Sky is also worried about
the potential introduction of EU-wide licensing and pricing, which could undermine its exclusive UK content deals. Generally, it is pushing for
deregulation, particularly in emerging hybrid or standalone IP- based platforms. It believes these could make a significant contribution to content invest- ment if light-touch regulation allows global competition. As Darroch said recently:
“... the response to a new world of choice and competition must be to step back and let the market deliver”.
Sky Sports: pay-TV pricing dispute
PACT MAINTAINING THE TERMS OF TRADE
Given the game-changing nature of the Communications Act 2003, Pact plans to emphasise the benefits to the industry of the existing Terms of Trade. Its argument is: if it ain’t broke, don’t fix it. The playing field became fairer for indies as a result of the 2003 Act, but the odds are still in the broadcasters’ favour. As a result, it is largely taking a
defensive approach but expects broadcasters, particularly Sky and ITV, to push hard for change. Pact will focus on the
indies’ contribution to economic growth, and the importance of retaining intellectual property. While it accepts there may be some tinkering to the 2003 Act, it will campaign for its principles to remain unchanged.
Beyond the Terms of Trade, the
digital future will play a major role in Pact’s submission, with the emphasis on regulation that can adapt to the evolving environment.
‘Pact is largely taking a defensive approach but expects broadcasters to push hard for change’
Excessive legislation could end up killing the business as it moves online, something the trade body is keen to avoid. The importance of the UK on
the global stage is paramount to this argument – not only in maintaining the UK’s current position, but ensuring it continues to grow.
Maintaining the principle: Pact boss John McVay
www.broadcastnow.co.uk
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