Shadow
04-08-2010, 14:20
Sky could be forced to sell its premium film channels at a discount to Virgin, BT Vision, or Talk Talk.
Media regulators have called for a competition investigation into the premium pay-TV film channels.
The investigation will focus on the sale of film right - primarily to Sky Movies - and the supply of premium film channels to other pay-TV providers.
Ofcom's call on the Competition Commission to investigate is the latest move in its three-year scrutiny of the British pay-TV industry.
Ofcom said: 'First-run Hollywood movies are particularly important to competition in the Pay TV sector. 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. This content is a key factor for many consumers when signing up to a pay TV service.
'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. The end result for consumers is less choice, less innovation and higher prices.'
The Competition Commission has two years to investigate and reach a decision into both linear channels like Sky Movies and subscription video-on-demand operations, and the rights sold by major Hollywood studios.
Ofcom is concerned that both linear and on-demand film rights are bundled together in order to deny the on-demand rights to competing services, so that Sky can charge more for its premium film channels.
Ofcom also suspects that Sky restricts the opportunities of other broadcasters to offer the Sky Movies channels, as it has been accused of doing with the Sky Sports channels.
As with sports channels, Sky could be forced to wholesale Sky Movies at cheaper rates to it competitors, and it might not be allowed to purchase bundles of film rights for linear TV and on-demand.
More... (http://wotsat.techradar.com/news/pay-tv-film-channels-competition-spotlight-04-08-10)
Media regulators have called for a competition investigation into the premium pay-TV film channels.
The investigation will focus on the sale of film right - primarily to Sky Movies - and the supply of premium film channels to other pay-TV providers.
Ofcom's call on the Competition Commission to investigate is the latest move in its three-year scrutiny of the British pay-TV industry.
Ofcom said: 'First-run Hollywood movies are particularly important to competition in the Pay TV sector. 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. This content is a key factor for many consumers when signing up to a pay TV service.
'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. The end result for consumers is less choice, less innovation and higher prices.'
The Competition Commission has two years to investigate and reach a decision into both linear channels like Sky Movies and subscription video-on-demand operations, and the rights sold by major Hollywood studios.
Ofcom is concerned that both linear and on-demand film rights are bundled together in order to deny the on-demand rights to competing services, so that Sky can charge more for its premium film channels.
Ofcom also suspects that Sky restricts the opportunities of other broadcasters to offer the Sky Movies channels, as it has been accused of doing with the Sky Sports channels.
As with sports channels, Sky could be forced to wholesale Sky Movies at cheaper rates to it competitors, and it might not be allowed to purchase bundles of film rights for linear TV and on-demand.
More... (http://wotsat.techradar.com/news/pay-tv-film-channels-competition-spotlight-04-08-10)