4 August 2010 10:19 GMT / By Rik Henderson
After an investigation into Sky's Pay TV movie packages, Ofcom has decided to refer the company's practices to the Competition Commission.
Rival service providers Virgin Media, BT, Setanta and Top Up TV submitted complaints over 3 years ago over the way Sky operates its Pay TV business, which has recently culminated in the satellite giant having to offer both Sky Sports 1 and 2 at wholesale prices to its competitors.
However, another part of the complaint, and subsequent investigation, involved Sky's buying and selling of movie rights from major studios. The rival providers argue that the satellite TV giant buys the video-on-demand rights for films as part of their linear broadcast packages, even though Sky currently has no mainstream VOD TV service (Sky Player is IP based), thereby tying-up major releases and preventing its competition from offering them to their customers. Ofcom agrees enough to now refer this specific case to the CC.
In a statement, it says: "First-run Hollywood movies are particularly important to competition in the Pay TV sector. This is because they are highly attractive to a large number of consumers, who want subscription access to premium high quality movies as close to their box office release as possible. This content is a key factor for many consumers when signing up to a pay TV service.
"Ofcom is concerned in particular that the way in which these movies are sold and distributed creates a situation in which Sky has the incentive and ability to distort competition. The end result for consumers is less choice, less innovation and higher prices".
It's a move that will certainly please Virgin Media and the like: We've long argued that current arrangements for the supply and acquisition of premium movies do not serve consumers well", a spokesperson told Pocket-lint. "We're pleased that these issues are now going to be the subject of further detailed examination by the Competition Commission".
Of course, it may take a while to find out the outcome, as the CC has a maximum of 2 years to present its findings, but seeing as we've waited 3 already, what's another 2?
Home Cinema, Ofcom, Sky, BSkyB, Virgin Media, BT, Setanta, Top Up TV



0800 numbers to be free to UK mobile users Under new Ofcom proposals
Orange most complained about mobile network provider, according to Ofcom report O2 the least
Internet security remains concern as Facebook continues to grow Privacy risks? What privacy risks?
Ofcom: UK 4G in 2012 is possible Using existing spectrum
Ofcom says UK broadband speeds are on the rise National average up
Is Facebook about to buy Opera to create own Facebook browser? EXCLUSIVE: Pocket-lint source tells us "yes"
APP OF THE DAY: The Weather Channel review (iPhone / iPod touch) Tonight for the first time, just about half-past ten...
Mazda CX5 2.2 TDI AWD A very zoomy SUV
Apple testing 3.95-inch iPhone 5, with 16:9 display 1136 x 640 resolution revolution
Jony Ive: Next Apple product is our most important and best work yet Better than iPod, iPad and iPhone?
Running blind: How Simon Wheatcroft uses his iPhone to see Runkeeper and more let this man run solo
WIN: Tickets to Ibiza Rocks to see Maverick Sabre and Labrinth live Epic prize courtesy of Sony
Which smartphone is best for the sun? Screens for the Summer
Dragon's Dogma Adventure time
Batman Nokia Lumia 900: Limited edition phone heading to UK Who are you? I'm Batman
Tom Clancy’s Ghost Recon: Future Soldier Roger likes a Tango at 12 o'clock
Bungie Destiny contract reveals Xbox 720 will arrive in 2013 - E3 announcement? Commissioned for Xbox 360 and "next Xbox"
Robert Moog Google doodle best yet, even better than Les Paul Synthesizer synthesiser
Porsche 911 Carrera (991) 2012 pictures and hands-on WANT
British Gas turns Team GB swimming stars into superheroes Aquanauts assemble
Olympus OM-D E-M5 review
The compact system camera to beat all others?
Nokia Lumia 900 review
Is big beautiful?
HTC One V review
V for victory?
Huawei Ascend G300 review
Big bang for your hundred quid
FIFA 12: UEFA Euro 2012 review
Lacks polish, if not the Polish
Asus Transformer Pad TF300T review
Transforms your money in to a great tablet
Nikon Coolpix P510 review
Does the P510 zoom beyond expectations?
Fujifilm X-Pro1 review
Like a Leica
Volkswagen Beetle Design 1.2TSi DSG review
The bug is back. Again.
BlackBerry Curve 9320 review
A BB for beginners?
Fujifilm FinePix HS30EXR review
Can Fujifilm’s latest put the ‘super’ in superzoom?
HP Envy 14 Spectre review
The Ultrabook that isn't an Ultrabook
The Walking Dead: The Game review
Fleshed out zombie bonanza
Nikon Coolpix S6300 review
Point, shoot and scoot