[Satellite TODAY 08-06-10] Ofcom, the U.K. communications regulator, has asked the U.K. Competition Commission to investigate concerns regarding BSkyB’s sale and distribution of subscription premium pay-TV movies.
     In a statement issued Aug. 4, the regulator said that it was “concerned in particular that the way in which these movies are sold and distributed creates a situation in which Sky has the incentive and ability to distort competition.”
    Ofcom outlined two issues for investigation. The first relates to how the rights to movies are sold by the major Hollywood studios to broadcast films for the first time on pay TV. The second concern relates to the wholesale supply of pay-TV packages containing movies channels, which are based on those rights.
    The Competition Commission has a maximum of two years to investigate and reach a decision on the concerns raised by Ofcom.
    In a statement, BSkyB’s pay-TV rival BT said the commission should consider all potential remedies, including operational and structural separation. “Consumers are poised to benefit from increased competition, greater choice and lower-priced options for premium sports, and we think this should also be the case for premium movies. We believe the Competition Commission should impose remedies for the upstream supply of movie rights from the major Hollywood studios in the first pay-TV subscription window and the wholesale supply of packages including core premium movie channels.”