Feeds

Lovefilm, Netflix 'no competitive constraint' on Sky Movies

Ofcom: satellite broadcaster has more power

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
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.