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BSkyB probe dropped because of how Netflix changed the pay-TV market

By  |  May 23, 2012

The Competition Commission has revised its provisional findings on its probe into the U.K. pay-TV market. Whereas it formerly found in August 2011 that BSkyB’s dominance led to a substantial lessening of competition, with higher prices and less choice for consumers, the Commission now believes that BSkyB’s hold has weakened. The rise of Netflix and Lovefilm has introduced more choice for consumers and spiked competition, and Sky Movies no longer has an unfair advantage. Although BSkyB does hold exclusive rights to first releases of Hollywood movies, new movies are considered less important to consumers, who now also consider variety and cost.

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    As a result of the revised findings, the Commission no longer proposes regulatory or remedial action.

    Full content: Bloomberg Businessweek

     

    Related content: Price Signals in Two-Sided Markets (Joshua Gans, University of Melbourne)

     

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