Watchdog finds excess Sky profit

BRITISH Sky Broadcasting has made “excess profits” on its Sky Movies service, according to the Competition Commission.

The company, which is the subject of a takeover bid from Rupert Murdoch’s News Corporation, has an exclusive deal with the six big Hollywood studios and may now be forced to lower its wholesale price to other broadcasters who want to show its ten film channels.

The commission found Sky Movies had consistently earned excess profits that were disproportionate to the risks it took early on in the deals.