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Marketing Week
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Branson tosses fat into the fire as Ofcom moves to curb BSkyB.
Publication:
Marketing Week
Publication Date: 29-OCT-09 |
Format: Online
Delivery: Immediate Online Access |
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Full Article Title: Branson tosses fat into the fire as Ofcom moves to curb BSkyB.(Richard Branson)(British Sky Broadcasting Group PLC) |
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Article Excerpt
Only Ofcom has the power to dilute Sky's dominance of the pay-TV market, but Sir Richard Branson will benefit hugely from it
Late last week, Sir Richard Branson, founder of the Virgin Group, made a timely guest appearance in the Financial Times. He was starring in the twin role he plays best - professional underdog and consumer champion. In a persuasive article, he laid out the case for dismantling BSkyB's virtual monopoly of the UK pay-TV market.
He made an interesting analogy between British Airways' conduct before 1990 and BSkyB's now. Only after the government loosened BA's grip on the premium route between Heathrow and the US, by allowing Virgin Atlantic to set up in competition, did real benefits begin to flow through to the consumer, alleges Branson. Prices fell, there was more choice and airlines (including BA) had to innovate and provide more attractive services.
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