Sky Movies may escape regulation thanks to Netflix and Lovefilm £49
21st May 2012 | 19:32
Increased competition means BSkyB not quite as dominant as first thought
BSkyB will not be subjected to competition regulation over the dominance of its Sky Movies platform, thanks largely to the emergence of Netflix and Lovefilm, reports have claimed.
According to the Mail on Sunday, the satellite provider will not be asked to loosen its grip on first-run Hollywood movies, when the Competition Commission issues a preliminary report next week.
Last August, the regulators began investigating whether Sky's large subscriber base gave it an unfair advantage over competitors in the pay-per-view movie market.
However Netflix and Lovefilm are now offering ample alternatives to Sky Movies and Sky Box Office, according to the report.
Not quite as dominant
The newspaper says: "Following the entry of Amazon-owned Lovefilm and fellow U.S. operator Netflix into the market, both offering films online, the commission is likely to say Sky's position is no longer as dominant as previously thought."
The news comes less than one month after Ofcom urged the Competition Commission to continue examining the case as it had found no evidence that Lovefilm and Netflix were posing a threat.
Ofcom said: "We have not seen any clear evidence presented to demonstrate that the subscription video on demand services offered currently by LoveFilm and Netflix exert a sufficient competitive constraint on Sky Movies."
As well as the two chief on-demand rivals, Sky also faces increased competition from the number of Smart TV and connected set-top box providers, so it's certainly no one horse race.
The Commission will publish its full report in July.