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Ofcom's movie plans could change broadband TV deals market

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Posted 6th August 2010 at 3:22pm by Oliver Folkard

Broadband and TV

New plans could see the way that movies are offered through broadband TV deals from the likes of Sky change, it has been suggested.

Communications regulator Ofcom has asked the Competition Commission to look into how content shown on premium movie channels is sold and distributed, as well as the impact they have on consumer purchasing behaviour.

The organisation has stated that its powers are limited in terms of addressing the issue, which is why responsibility has been passed on.

"Ofcom is 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," the body outlined.

"The end result for consumers is less choice, less innovation and higher prices."

It is possible that the investigation could lead to lower costs for subscribers to such deals, in a similar manner to the changes which saw the price of access to Sky Sports fall in recent months.

BT is now offering Sky Sports 1 to its subscribers from £6.99 a month.

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