Sky TV cleared on movie competition

 

BSkyB's stranglehold on movies from the big Hollywood studios
does not harm competition in the pay-TV market, a watchdog ruled today.

The Competition Commission said it believed consumers attached more importance to having access to a broad range of content and to price than they do to seeing the most recent movie content.

And it said the launch of services by US firm Netflix and Lovefilm meant consumers now had a much wider choice than when the Commission launched its investigation into the sector two years ago.

In provisional findings last August, the watchdog initially ruled that Sky's deals with six of the big film studios over the rights to films when they are first shown on television restricted competition.

But it revised this view in May and confirmed today that it will not be taking any action on the issue.

While it said competition in the pay-TV market overall remained ineffective, it concluded that first-pay movie content does not provide Sky with an advantage when competing for pay-TV subscribers.

Inquiry chairman Laura Carstensen said: "It is clear that consumers now have a much greater choice than they had a couple of years ago when our investigation began.

"Lovefilm and Netflix are proving attractive to many consumers, which reinforces our view that consumers care about range and price as well as having access to the recent content of major studios."

The pair have the rights to several other studios, including for movies such as the Twilight series and the recently-released The Hunger Games.

The inquiry also noted the launch of Sky's own internet-based service Now TV, which will offer Sky Movies without the need to take any other pay-TV content or subscribe to Sky's platform.

The Commission's decision to overturn its provisional findings was criticised by BT, which said recent market developments did not alter the fact that Sky holds all the exclusive first-run rights for the major Hollywood studios.

It said in May: "Like BT, new entrants are still locked out of the chance to offer their customers the most recent films on subscription."

PA

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Life and Style
Suited and booted in the Lanvin show at the Paris menswear collections
fashionParis Fashion Week
Arts and Entertainment
Kara Tointon and Jeremy Piven star in Mr Selfridge
tvActress Kara Tointon on what to expect from Series 3
Voices
Winston Churchill, then prime minister, outside No 10 in June 1943
voicesA C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
News
i100
News
An asteroid is set to pass so close to Earth it will be visible with binoculars
news
Arts and Entertainment
Benedict Cumberbatch has spoken about the lack of opportunities for black British actors in the UK
film
News
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Sauce Recruitment: Programme Sales Executive - Independent Distributor

£25000 - £28000 per annum + circa 28K + 20% bonus opportunity: Sauce Recruitme...

SThree: Talent Acquisition Consultant

£20000 - £25000 per annum + OTE £45K: SThree: Are you an ambitious, money mot...

Guru Careers: Investment Writer / Stock Picker

Competitive (DOE): Guru Careers: A freelance Investment Writer / Stock Picker ...

Guru Careers: PPC Account Executive / Paid Search Executive

£20 - 24K + Benefits: Guru Careers: An enthusiastic PPC Account / Paid Search ...

Day In a Page

Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
America: Land of the free, home of the political dynasty

America: Land of the free, home of the political dynasty

These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
A graphic history of US civil rights – in comic book form

A graphic history of US civil rights – in comic book form

A veteran of the Fifties campaigns is inspiring a new generation of activists
Winston Churchill: the enigma of a British hero

Winston Churchill: the enigma of a British hero

A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Growing mussels: Precious freshwater shellfish are thriving in a unique green project

Growing mussels

Precious freshwater shellfish are thriving in a unique green project