Feeds

Lovefilm, Netflix 'no competitive constraint' on Sky Movies

Ofcom: satellite broadcaster has more power

Gartner critical capabilities for enterprise endpoint backup

Sky has too much money and subscribers to be threatened by the likes of Lovefilm and Netflix, the telecoms and media watchdog Ofcom has said.

"It does not appear to us that the current streaming VoD services offered by Lovefilm or Netflix are substitutes for Sky Movies," Ofcom said. "Rather than being substitutes for Sky Movies, these services appear to be designed to more closely resemble a general entertainment TV channel service."

Reporting once again to the Competition Commission's enquiry into the market for movies on pay TV, Ofcom said Sky has a far greater ability to buy first-broadcast rights to films and TV shows than the IPTV services do.

Amazon-owned Lovefilm and Netflix instead rely on gaining the rights to stream material when it has already been broadcast for the first time and content owners are selling rights to repeat transmissions, typically when their material is also made available on physical media.

"The [IPTV] services are not pure movies offerings and instead rely heavily on US and UK TV series content, a significant proportion of which is not recent," Ofcom told the Commission.

"We also do not consider that a meaningful analysis of the competitive impact of these new services can be based on a simple count of the number of movies to which they provide access."

All that, said Ofcom, is why Lovefilm and Netflix need only charge from a fiver a month, while Sky wants a £20-a-month basic subscription and £16 each month on top of that for its Movies offering.

"We have not seen any clear evidence presented to demonstrate that the streaming VoD services offered currently by Lovefilm and Netflix exert a sufficient competitive constraint on Sky Movies," Ofcom concluded. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?