"First-run Hollywood movies are particularly important to competition in the pay-TV sector," said Ofcom. "This is because they are highly attractive to a large number of consumers, who want subscription access to premium high-quality movies as close to their box office release as possible. Ofcom is concerned in particular that the way in which these movies are sold and distributed creates a situation in which Sky has the incentive and ability to distort competition."More on MediaGuardian. One has to question how valid a two-year investigation by the Competitions Commission will be, given the arrival of internet-enabled TVs and other IP services. In fact, will the Tories keep OFCOM around that long?
Ofcom is also concerned that Sky will have the ability to dominate the subscription video-on-demand market for premium film when it launches such services. "In the longer term we are concerned that as Sky develops its subscription video-on-demand services, its current market power in relation to linear channels could be transferred across to these new services," the regulator said.
August 04, 2010
OFCOM takes on BSkyB over movies