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BskyB have been criticised over the purchase of shares in ITV.It could affect competition and business strategy.Sponsored Link
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Back in November 2006 BskyB purchased a 17.9% share in ITV for 940 million. There are now concerns that BSkyB will now be able to have too much influence on ITV. There is a risk that BSkyB could restrict competition with other TV companies or prevent ITV business progress.
BSkyB and ITV are similar in the sense that they are both media companies that specialise in TV. They are different by Sky being a much bigger corporation and the first of its kind to offer extra TV channels. Sky is a pay TV operator, where as ITV is a free to air TV offer, which will create competition away from Sky. But on the other hand Sky is the biggest shareholder that ITV have so they maybe able to influence strategic decisions like investments or content. Other TV companies state their concerns of the effect this share holding could have. Virgin is one of the companies that show disagreement of BSkyB purchase. It was said that before BSkyB bought these shares ITV and Virgin TV were set to merge. A Watchdog also shows concerns that they are working against public interest. On the defence of BSkyB's stake in ITV, it has been said that it will not affect day to day running or the networks and should not bring competition within the areas of advertising and TV news. |
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