Sky TV service, which is run by British Sky Broadcasting (BskyB), has opinionated that BBC Trust's 'inherent tension' regarding the 'Project Canvas' digital alliance has lead it to ignore the competition concerns related to the controversial venture.
The popular TV broadcasting network has validated the concerns raised by Virgin Media chief Neil Berkett, claiming that the Trust is in conflict with its primary role to protect the rights of license fee payers and charting a course of action for BBC channel.
In a statement released by BskyB, the company accused the BBC Trust off 'favouring the BBC's short-term commercial objectives over the interests of the wider market, and the licence fee payer.'
Commenting on the issue, BskyB said in the statement that “Indeed in a world with Canvas it becomes imperative that the BBC syndicate its public service content without bundling it with iPlayer.”
According to a report studying the impact of Project Canvas on pay-TV services like Virgin Media and BskyB, it has been estimated that both the services stand to lose anything between £127m and £470m in revenues whereas Virgin Media claims that the damages can amount to £600 million.
BskyB also mentioned that the funding required for getting the Project Canvas up and running has the risk of violating state aid rules set up by the government.