Sky 'restricting pay-TV film competition'

Sky's control over pay-TV movie rights in the UK is restricting competition, leading to higher prices and reduced choice, the Competition Commission has provisionally ruled.

The commission said it was considering whether to restrict the number of Hollywood studies from which Sky currently has the exclusive rights to be the first to air their new releases.

Sky said it continued to consider that no regulatory intervention was needed.

A final ruling is due next year.

Sky has twice as many pay-TV subscribers as all its rivals combined.

At present it has agreements with all six of the major Hollywood studios to be the first UK broadcaster to be able to air their new releases on pay-TV.

The commission said that because of the company's large subscriber base, "would-be rivals are unable to bid successfully against Sky for these rights".

Laura Carstensen, who led the commission's investigation, said: "If things stay as they are, we see no likely prospect of change."

The commission added that other possible remedies it was considering included requiring Sky to offer its range of new movie releases to its rivals on a wholesale basis.

Sky said: "We note that the Competition Commission's findings remain provisional and have been issued for consultation.

"We will continue to engage with the Competition Commission during the on-going regulatory process."