This framework provides a useful way to analyse Sky's position within the pay-TV market. The overwhelming majority of domestic satellite dishes in the UK are pointed to the Astra satellites. While Sky does not control the transmission system, it controls a significant amount of transponder capacity. In any event access to satellite capacity is likely to take on a growing significance as a barrier to entry and source of market power. Wholesale supply of premium programming .
Sky is the only wholesale supplier for premium sports and movie channels.
As such channels are a key driver of the pay-TV market this means that, put in stark terms, companies wishing to compete with Sky in the retail market must obtain programming from Sky's wholesale operation. This market is subject to the substantial barriers to entry discussed above. There appear therefore to be good grounds for deeming Sky to be dominant in this part of the market. The grounds for considering Sky to be dominant in general news and entertainment programming do not appear to be as strong. The possession of substantial market shares together with the existence of substantial barriers to entry leads us to conclude that there are good grounds for regarding Sky as being dominant in the pay-TV market.