Technology

UK’s Competition Commission finds lack of competition in pay-TV movies due to Sky

MUMBAI: The Competition Commission (CC) in the UK has provisionally found that UK pay TV service provider Sky’s control over pay-TV movie rights in the UK is restricting competition between pay-TV providers, leading to higher prices and reduced choice and innovation for subscribers.


Sky has for many years held exclusively the rights to the movies of all six major Hollywood studios in the first subscription pay-TV window (FSPTW).


In a summary of its provisional findings published today, the CC has provisionally found that, due principally to the incumbency advantage Sky has in the form of its large base of subscribers, would-be rivals are unable to bid successfully against Sky for these rights. Although Sky supplies its movie channels (Sky Movies) to some other pay-TV retailers, the CC has provisionally found that this supply has not enabled these retailers to compete effectively with Sky for movie
channel subscribers.


Due to the importance of being able to see recent movies to many pay-TV subscribers, Sky’s control over the FSPTW movie rights of the major studios, and therefore over the movie channels incorporating this content, contributes to a lack of effective competition in the overall pay-TV retail market. Many consumers do not consider the other ways of watching movies as close substitutes to Sky Movies, which is
confirmed by the value attached to the FSPTW rights of the major studios by Sky and the studios.


Although the CC is aware of some significant developments taking place in the market, it has not seen evidence that these are likely to diminish Sky’s bidding advantages to any meaningful degree in the foreseeable future.
 


The CC has invited responses to its provisional findings and consulting on measures to make the market more competitive.
Chairman of the Movies on pay TV market investigation Laura Carstensen said, “Sky has had control of recent movie content on pay TV for many years. At the heart of the problem is Sky’s strong position in the pay-TV market, with twice as many subscribers to pay TV as all other traditional pay-TV retailers put together. This provides Sky with a great advantage when it comes to bidding for movie rights, which no rival bidder has yet been able to overcome—and, if things stay as they are, we see no likely prospect of change. Recent movie content is important to many pay-TV subscribers. As a result, Sky’s control of this content on pay TV enables it to attract more pay-TV subscribers than its rivals and having more subscribers increases further its advantages when bidding in the next round for pay-TV movie rights, and so it goes on."


As a result of this lack of effective competition, subscribers to Sky Movies are paying more than they otherwise would.


“On the basis of our findings, we would like to encourage greater competition by enabling more firms to secure the pay-TV rights of the major studios so as to be able to offer movie fans new choices in competition with Sky’s movie offerings. We are consulting today on the kinds of remedies which we might pursue,"Carstensen said.


The principal possible remedies on which the CC would like to invite views are:


1. restricting the number of major studios from which Sky may license exclusive FSPTW rights;


2. restricting the nature of the exclusive FSPTW rights which Sky can license from the major studios (eg so that rights for distribution methods such as subscription video on demand could be made available to other providers); and/or


3. ‘must retail’ measures requiring Sky to acquire on a wholesale basis and offer to its subscribers any movie channel containing FSPTW movie content created by a rival.


The CC expects to publish the full provisional findings report next week. The CC would like to hear from all interested parties in response to its Notice of Possible Remedies by 9 September and in response to its provisional findings by 16 September.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/17/Rahul%20Nehra.jpg?itok=mP6RbVf2
Friend MTS-Castle Media to tackle Bollywood's digital piracy using unique watermark tech

MUMBAI: Piracy is a serious challenge to the entertainment industry in India. In fact, according to the Motion Pictures Distributors Association of India (MPDA), India country is infamous for having one of the highest rate of video piracy in the world. Lack of stringent IP protection laws to...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/11/set-top-box-800x800.jpg?itok=pz9wqMdr
India poised to emerge as lucrative market for UHD STBs

The growing inclination of people towards ultra-high definition video viewing can be attributed as a major reason for the 4K Set-Top Box’s (STB) market growth. According to a report by Grand View research, the global 4K STB market size is projected to reach US$7.18 billion by 2024.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/01/Reliance-Jio-800x800_1.jpg?itok=Z9RZ3iGr
Reliance Jio to launch Android powered 4K STBs

Enjoying huge waves of success, Reliance Jio, within few months of its launch, plans to launch Android powered set-top boxes (STBs) in India. Following its idea of providing free 4G internet, this is believed to be Jio's second step in building their envisioned Digital Ecosystem in India.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/10/25/bi-800x800_0.jpg?itok=tfaGWUVv
Highly-beneficial interactions take place at Broadcast India '16

The 26th Broadcast India Show concluded over the weekend in Mumbai, and was easily the most exciting Broadcast India Show yet. With thousands of eager, high-quality trade visitors swarming the show floor, a sentiment signalling highly-beneficial exchanges and interactions echoed through the halls...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/23/Untitled-1_28.jpg?itok=sUqa1jZF
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/23/Untitled-1.jpg?itok=I_5UAd8p
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/19/Untitled-1_0.jpg?itok=Op9PJAk4
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/06/Untitled-1_12.jpg?itok=gePFFzBo
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/06/Imagine%20Communications.jpg?itok=hHV0BPjB
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories