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Virgin Media has expressed disappointment after the UK Competition Commission ruled that Sky does not dominate the pay-TV movies market.

In a preliminary report last August, the commission raised concerns about the fact that Sky holds seven-figure deals with the six main US film studios.

However, the body said recent developments - such as the launch of Netflix in the UK and continued growth at LoveFilm - have altered the composition of the market.

As such, the Competition Commission has no plans to interfere with the market - a decision described as "irrational, unsound and highly speculative" by Virgin Media.

The cable TV provider said the decision will have "severe consequences" for consumers.

"The facts remain unchanged: Sky has dominated the pay-TV market for some 20 years and, left unaddressed by meaningful regulatory intervention, will continue to do so," Virgin Media stated.

Earlier this year, Netflix Chief Executive Ted Sarandos claimed there isn't a pressing need for government intervention in the pay-TV movies market.

He said the firm is looking for a "fair fight" with Sky in this arena.

"Frankly we think many people will get Netflix in addition to Sky Movies or Sky Atlantic," Mr Sarandos stated.

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