Ofcom Refers Pay-TV Movie Concerns to Competition Commission

LONDON: British communications regulator Ofcom has asked the Competition Commission to investigate its concerns regarding the sale and distribution of subscription movies on pay-TV platforms.

Ofcom has expressed concerns that the way in which big-name movies are sold and distributed creates a situation in which BSkyB has the incentive and ability to distort competition. Ofcom said that it cannot address these concerns fully using its powers and has referred them to the Competition Commission.

The referral relates to two specific movies markets. The first concerns the rights to movies sold by the major Hollywood studios to broadcast films for the first time on pay TV. The second concerns the wholesale supply of pay-TV packages containing movies channels, which are based on those rights. Ofcom analysis has identified that within these two markets there are a number of features that, in combination, may reduce competition.

The Competition Commission has a maximum of two years to investigate and reach a decision on the concerns.