A PYMNTS Company

Lovefilm and Netflix “far from clear” threats to Sky, says Ofcom

By  |  April 22, 2012

Ofcom has provided comments on the Competition Commission’s working paper and research report on the pay-TV market. In its comments, Ofcom recommends that Netflix and Lovefilm “should be viewed in context and that their potential market impact should not be overestimated,” because the competition they pose to Sky is “far from clear.”

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Through its contracts with the six major Hollywood studios, Sky controls almost all first subscription pay-TV window movie content in the wholesale market, according to the Competition Commission’s provisional findings. Moreover, Lovefilm and Netflix’s subscription video on demand services are not believed to be substitutes for this content: the two offer mainly non-recent television series.

    Since Ofcom believes that first subscription pay-TV window movie content is the “key factor” in competition for the pay-TV sector, Sky still has a stranglehold on the market.

    Full content: The Guardian

     

    Related content: Are Media Markets Analyzed as Two-Sided Markets? (John Wotton, Allen & Overy)

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.