Feeds

Lovefilm, Netflix 'no competitive constraint' on Sky Movies

Ofcom: satellite broadcaster has more power

Beginner's guide to SSL certificates

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. ®

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
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
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
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
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.