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The
move reports state is a victory for Virgin
Media. It has been lobbying for an investigation.
its argument is that the investment in ITV
by a firm that Murdoch’s News Corp
has a stake in threatens media plurality
in the UK.
Ofcom's
initial findings will be submitted by 27
April. This could result in the BSkyB stake
in ITV being referred to the Competition
Commission for a fuller investigation. Last
year in November BSkyB had purchased for
£940 million 17.9 per cent of ITV.
Cable
firm NTL now known as Virgin Media had tried
to buy ITV for £5 billion. Sky says
that its minority shareholding in ITV has
no bearing on the considerations of the
public interest test relating specifically
to media plurality. It says that it is inconceivable
to suggest that, as a result of a 17.9 per
cent shareholding in ITV, Sky would be able
to influence ITV's broadcasting strategy
or policies, including programming or editorial
decisions, which remain entirely the responsibility
of the board.
Sky
adds, "In its short history, Sky has
fundamentally increased choice for viewers,
consistently pioneered innovations, invested
in and developed quality on-screen content,
and is now challenging incumbent telecom
and cable providers with lower-cost broadband
and phone services. Sky makes a significant
contribution to plurality in the highly
competitive media sector."
Meanwhile
BSkyB could take a hit of up to 20 million
pounds if it loses a deal to show its basic
channels on Virgin Media. Interestingly
though analysts say that it is the other
firm that could suffer more in the long
run. The deal concludes on 28 February 2007.
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