BSkyB faces Ofcom investigation into pay-TV films

Ofcom raised the issue in March when it forced BSkyB to cut the amount it charges rival broadcasters to show Sky Sports channels.

It also highlighted concerns that the broadcaster was restricting the distribution of premium film rights.

Today Ofcom has asked the Competition Commission to investigate concerns regarding the sale and distribution of subscription premium pay-TV films – the first showing of Hollywood blockbusters on TV.

"First-run Hollywood films are particularly important to competition in the pay-TV sector," says Ofcom. "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.

"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 industry regulator is also concerned that Sky will be able to dominate the subscription video-on-demand market for premium films when it launches its own VoD services.

The Competition Commission will have two years to complete its investigation, which will look at the rights to films sold by the major Holywood studios to broadcast films for he first time on pay TV.

The second area Ofcom will investigate is concerns about the wholesale supply of pay-TV packages containing film channels, which are based on those rights, to rivals.

Last year Sky hit back furiously at Ofcom's "unprecedented level of interference in commercial markets", saying it would use "all available legal avenues" to contest Ofcom's ruling.

Follow whathifi.com on Twitter

Latest in TV Streaming Services
Formula 1
US readers rejoice – F1's getting a key upgrade UK fans have enjoyed for ages
Cobra Kai
The 'perfect' and 'emotional' finale to Netflix's action-packed hit series is finally here
Emily in Paris
Netflix's UK prices are rising – here's how much more you'll pay
BBC
Netflix viewers may soon have to pay the BBC licence fee – and I think it's a good idea
A TV showing the new Now home page with Free Guy as the featured selection. Two people sitting in the foreground watching the TV in a modern living room environment.
Now TV to receive a major overhaul with new features and a fresh look later this month
DC League of Legends Super-Pets
This "cute superhero romp" from DC Comics arrives on Netflix just in time for family movie night
Latest in News
Sony WF-C710N earbuds lined up in different finishes
They’re official! Sony finally takes the wraps off its WF-C710N budget wireless earbuds
A flower on a TV screen with a gem in the middle.
TCL's new Mini LED TV range comes with huge brightness gains, reduced blooming and souped-up sound
Sony WH-1000XM4 on a table with a plant
Some of our favourite-ever five-star wireless headphones have plummeted to nearly half price – £172 off!
RCA Roku TV 24-inch (RK24HF1) small TV
My favourite kitchen TV has dropped to under £100 for Amazon Spring Deal Days
Sony XR-48A90K
Amazon has slashed the price of this five-star Sony OLED, but we have found an even better deal
Fiio FX17 in-ear headphones
Fiio's flagship in-ear headphones are packed full of drivers to put your music in pole position