The Competition Commission (CC) has decided that Sky's position in relation to the acquisition and distribution of movies in the first pay window does not adversely affect competition in the pay-TV retail market.
In its final report, the CC has concluded that Sky Movies is not a sufficient driver of subscribers' choice of pay-TV provider to give Sky such an advantage over its rivals when competing for pay-TV subscribers as to harm competition.
The CC said that it has found that more consumers attach importance to other service attributes, like having access to a broad range of content and to price, than they do to seeing recent movie content; the launch of new and improved movie services by Netflix and LOVEFiLM, which reflects an increasing trend of audio-visual content being delivered over the Internet, has increased competition and consumer choice; and the recent launch of Sky Movies on Now TV gives consumers for the first time a choice of subscribing to Sky Movies separately from their subscription to other pay-TV content.
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