Sky faces movie restrictions from Competition Commission
BSkyB could lose its long-standing hold on the exclusive rights to broadcast movies from the six major Hollywood studios in the first subscription pay-TV window, due to a provisional ruling by the Competition Commission.
The commission decided Sky's control over the rights contributes to a lack of effective competition in the overall pay-TV market and has floated three possible courses of action.
One is to restrict the number of major studios from which Sky may license first-subscription pay-TV window rights.
Another is to restrict the type of rights Sky can license, so that, for example, the distribution method of subscription video on-demand could be made available to other providers.
Also under consideration is compelling Sky to offer any movie channel containing first subscription pay-TV window content created by a rival, a measure dubbed "must retail".
It has opened a consultation on these possible remedies and has set a deadline of 9 September for parties to respond. The separate deadline for responses to its provisional findings is 16 September.
Laura Carstensen, chairman of the movies on pay-TV market investigation, said: "At the heart of the problem is Sky's strong position in the pay-TV market, with twice as many subscribers to pay-TV as all other traditional pay-TV retailers put together.
"This provides Sky with a great advantage when it comes to bidding for movie rights, which no rival bidder has yet been able to overcome – and, if things stay as they are, we see no likely prospect of change."
Sky hit back at the commission in a statement, saying it believes "no regulatory intervention is required and that consumers benefit from high levels of choice, value and innovation across a wide range of providers".
It continued: "We note that the CC's findings remain provisional and have been issued for consultation. We will continue to engage with the CC during the ongoing regulatory process."
This article was first published on mediaweek.co.uk
- Sky shuts out Netflix and LoveFilm with deal for Universal films
- Sky escapes pay-TV film restrictions
- BT hits out at Competition Commission ruling on pay-TV movies
- Competition Commission consults on BSkyB's grip on movies
- Pay-TV movie market faces competition probe
- BSkyB must slash price of Sky Sports 1 and 2 by almost a quarter
- Digital Account Director - Creative Agency - London Sphere Digital 50-70k +bonus +benefits, London, South East
- Managing Director - Equity potential DU Group £120,000 - £150,000, South Oxfordshire
- SAS Customer Insight Analyst Harnham £45000 - £55000 per annum + benefits package, London
- Social Media Manager - Consumer/FMCG - £30-35k Digital Gurus £30000 - £35000 per annum + plus benefits , London
- PR Account Director - Luxury/Lifestyle - Leading PR Agency Digital Gurus £38000 - £45000 per annum + benefits, London