How big is your pie?
> open up pay TV competition for the benefit of consumers
The problem with competition is the size of the market.
Typically when companies compete, there are a few things that can happen: prices (and by implication: margins) can drop, products and/or efficiency can improve, and more "stuff" gets consumed.
So far as TV viewership is concerned, in the UK it seems to be pretty much at saturation: all the people who want to watch as much TV as they can, or are physically able to, already do so. Making more content available won't do a great deal to get more eyeballs staring at the goggle-box for more hours on more days.
Since the total size of the potential market has already been reached, all that increased competition (or "choice" if you're a politician) will do is to make each company's slice of the market smaller.
How could TV be made cheaper? Well, in the UK the licence
tax fee is independent on the amount of competition. It might be possible for a new player to put pressure on Sky to reduce their subscriptions, but more channels would increase the number of advertising minutes available, which would drive down rates and therefore lower advertising income - so no benefit there (not even to advertisers, who'd have to pay for more ads to reach the same number of millions of viewers).
As for improving the product - yeah, that happens! [ errr, no it doesn't ] When TV companies have less income, they make cheaper programmes: reality, game shows, chat shows and cut the expensive "quality" programming and the niche/specialised programmes that attract few viewers. They also show more repeats. However, with some channels on Sky already showing only three or four hours of original (i.e. never seen before on UK TV) content per week, there's not much scope for that, either.
So what would more TV competition look like? Just more repeats, more advertisements, more imported programmes. more celebs and reality and the same number of viewers grumbling that "there's never anything to watch". Oh, and the BBC - still with its protected £ billions, making programmes without the encumbrance of advertising (or much in the way of transparency or oversight - who decides if they screen yet more celebs & dancing, anyway?) and squashing the prospect of the independents making money by competing with them given their enormous (unearned) income. It would be interesting to see how that sits with pan-european TV competition.