View Single Post
Old 01-03-2011, 21:38   #115
LexDiamond
Inactive
 
Join Date: Feb 2010
Location: Berks
Services: Sky+HD, Sky Unlimited BB and Sky landline
Posts: 784
LexDiamond has reached the bronze age
LexDiamond has reached the bronze ageLexDiamond has reached the bronze ageLexDiamond has reached the bronze ageLexDiamond has reached the bronze ageLexDiamond has reached the bronze ageLexDiamond has reached the bronze age
Re: sky movies (excess profits)

Quote:
Originally Posted by Hugh View Post
But you are missing the point that Ofcom are making - they tie up VOD rights for Movies from the six major studios, and then do not release them on the VOD platform (only a percentage of them).

They do this to be, in Ofcom's view, anti-competitive - they buy up the rights not to show the films on VOD, but to stop others doing so.
I do understand that point. I made the point in an earlier post that VOD viewing is likely to become more mainstream with a number of big organisations wishing to make the move into VOD for these movies.

As it becomes more mainstream the VOD rights become more lucrative and Sky have more competition. So either Sky make some money from this or they get beaten to the rights by someone who can make money from them.

But either way competitive forces eventually prevail. Thats how the market should work and not through meddling by Ofcom.
LexDiamond is offline   Reply With Quote