Feeds

Competition officials snap on fresh glove after 4-year Sky Movies probe

Netflix, LOVEFiLM and unbundling give 'crats a reality check

Beginner's guide to SSL certificates

The UK Competition Commission's four-year probe into Sky Movies has shifted gear, with the agency acknowledging that the market has changed significantly since it produced its interim judgment last summer.

Back then, the Commission decreed that Sky's "first-window" deals (technically referred to as the FSPTW or 'First subscription Pay TV window') with six major Hollywood studios were anti-competitive. A model was used to reckon that movie prices paid by Sky customers were £50m to £60m higher than they would otherwise be. Although Sky also offered the content to other broadcasters such as Virgin, the Commission decreed the price paid was too high and that there was no "effective" competition.

But since then, much has changed. Sky will make its movies available to anyone over any internet connection, rather than insisting punters sign up to Anytime+ using a Sky broadband connection. Sky has also set up a Movies Store and has expanded the catalogue available.

That's a response to two new OTT providers, Amazon-owned LOVEFiLM and Netflix, which have entered the UK market – and their presence is hard to escape. Although neither has snared a top-six studio for the first-run window in the UK, they have in Germany. The duelling OTT twosome have grabbed rights to new FSPTW movies, and acquired second and third window rights too.

So, with a bit of coughing and a shuffling of feet, the Commission notes that "... the volume and quality (in terms of UK box office success and recency) of content offered by LOVEFiLM and Netflix is much greater than that offered by the movie subscription services available on pay TV from market participants other than Sky at the time of our provisional findings."

In its submission, Hollywood studio Universal pointed out something interesting that the Commission had missed. Pay TV services offer a range of stuff, and the first-run movies are becoming a diminishing part of the mix. Sky itself is spending much more on its own original programming, as it attempts to lure lucrative highbrow viewers from the BBC through Sky Arts. As more broadcasters invest more in their content – HBO being the classic example – the Hollywood-Sky relationship is less crucial.

The Commission says it will now deliver a final report in July. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.