Sky could win reprieve over pay TV probe
THE COMPETITION Commission is to publish a preliminary report this week suggesting that BSkyB’s dominance in the pay-TV movie market has been weakened by new entrants, reducing the need to impose restrictions, it is understood.
Following the entry of Amazon-owned LoveFilm and fellow US operator Netflix into the market – which both offer films online and through internet TVs – the commission is minded to say Sky’s position is no longer as dominant as before.
In August last year the regulator had said BSkyB’s large subscriber base gave it an advantage that meant potential rivals found it difficult to bid successfully for the rights to first-run Hollywood movies.
This in turn meant consumers found little alternative to Sky Movies for new blockbuster films, it had said at the time.
However, online films rental company Netflix launched in Britain and Ireland in January, taking on BSkyB’s premium drama and movies service and prompting Amazon’s Lovefilm to offer a new cut-price service.
Netflix’s chief executive Reed Hastings said at the time that BSkyB would be its main competition.
In response, the Competition Commission said in March it would broaden its probe to assess the impact of these new services on consumer use of pay-TV services.
After examining the effect these new rivals could have on the competitive landscape, the watchdog is expected to say it has changed its mind.