Chris Forrester, on 14-09-2008

BSkyB’s plan for Picnic, the name given to its MPEG4-based project to add a half-dozen channels to its digital-terrestrial frequencies, has been cancelled. Rumours had been circulating for some weeks that staff were being laid off and the position was confirmed on Friday. BSkyB firmly lays the blame at UK regulator Ofcom.

BSkyB, in a statement, said: “The blunt truth is that Ofcom has spent 18 months looking at our proposals and there is no end in sight. There is nothing left to be achieved until Ofcom makes its mind up.”

Sky had planed to use its existing MPEG2-based bandwidth on the Freeview DTT system for Picnic. The statement continued: “While regulation works at its own pace, no business can go like this indefinitely so we had to make some pragmatic decisions.”

Ofcom issued an immediate rebuff, arguing that having announced Picnic in a press statement in February 2007, “BSkyB took two months to submit the necessary application and a further two months to provide sufficient information to enable Ofcom to publish a consultation document on the matter. When Ofcom consulted on both the Picnic proposal and the Pay-TV Market Investigation, several stakeholders, including BSkyB, responded late to these submissions. BSkyB submitted its response on the Pay-TV Market Investigation over six weeks after the 26 February 2008 deadline. We have received a number of supplementary submissions from stakeholders after deadline dates which we are bound to consider. The most recent one from BSkyB arrived as late as 13 August 2008. BSkyB has raised a series of procedural points throughout this period, including a repeated concern that we are spending insufficient time considering its arguments.”

Sky never acts without contemplating the full impact, and possible consequences of an action especially in a case as serious as this – and a Plan B, C and so on. But here again is a classic case of the regulator getting in the way of a broadcaster’s business plan that would have had its fair set of challenges to be a success.

Source: Rapid TV News 2008

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