sky movies (excess profits)

thunderlips · 08-02-2011, 20:14

anyone see the article about sky movies making excess proffits ?

The Competition Commission has said BSkyB is making "excess profits" on its movie channels, increasing the likelihood that the company could be forced to change the way it does business with Hollywood studios and rival broadcasters.

Digital Fanatic · 08-02-2011, 20:33

Quote:

Originally Posted by thunderlips

anyone see the article about sky movies making excess proffits ?

The Competition Commission has said BSkyB is making "excess profits" on its movie channels, increasing the likelihood that the company could be forced to change the way it does business with Hollywood studios and rival broadcasters.

Yeah, it's on Digital Spy. The bit that interests me is the way Sky lock away On Demand rights that thay can't even use!.

Linkage HERE

Sky is making "excessive profits" from its Sky Movies service, the UK's competition regulator has said, hinting at potential forthcoming reform of the pay-TV films market.

Quote:

In a working paper published on the Competition Commission website, the watchdog reported early evidence that Sky "appears consistently to have earned profits in aggregate in excess of its cost of capital ['excess profits'] in the recent past and over a long period".

devilincarnate · 08-02-2011, 20:39

Quote:

Originally Posted by Digital Fanatic

Yeah, it's on Digital Spy. The bit that interests me is the way Sky lock away On Demand rights that thay can't even use!.

Linkage HERE

Sky is making "excessive profits" from its Sky Movies service, the UK's competition regulator has said, hinting at potential forthcoming reform of the pay-TV films market.

You should read the working papers it make for good reading ( all 20 of them ) It takes a while to get through them.

thunderlips · 08-02-2011, 20:53

its about time something was done and hopefully sky get to reudce the price it charges to other broadcasters !

frogstamper · 09-02-2011, 01:38

We in the UK will never have a truly level playing field for other pay TV operators until Sky are stopped from cornering the market, sports and movies are dominated by Sky giving the likes of VM and BT little chance of setting up rival services.
The fact that Sky lock away the ON Demand rights because they are not capable of using them can't be right...I'm sure these excessive profits won't stop Sky from putting their premium service prices up yet again.

Digital Fanatic · 09-02-2011, 10:34

another interesting quote from the article...

Quote:

"Although Sky has taken significant risks in the past, its most risky investments were many years ago and achieved short payback periods. Therefore it appears to us that Sky's excess profits can no longer be explained by the risk of its earlier investments."

In response to the commission's initial ruling, a Sky spokesperson said: "We stand by our record in bringing choice and innovation to UK consumers.

"We believe that Sky's profitability today reflects its past investments and its success in delivering highly valued products to customers. The CC's movies investigation is at a preliminary stage and we will respond to its working papers as the process continues."

A possible solution to the pay-TV movies situation would be preventing Sky from signing exclusive deals with the major studios, meaning companies like the Amazon-owned LoveFilm could benefit from getting greater access to subscription movies.

Tod · 09-02-2011, 10:54

And the likelyhood that the Conservatives upset Murdoch......nil!

Big-Ted · 09-02-2011, 11:09

Quote:

Originally Posted by Tod

And the likelyhood that the Conservatives upset Murdoch......nil!

The competition commission is an independent organisation and as such the Tories have no influence over it's findings.

They can veto them but to do so would be a major thing that would cause them all sorts of problems that I doubt they would want.

Unlike Ofcom the CC can tell Sky to do what they want and it's legally binding beyond limiting what they can charge others etc.

They could even break Sky up if they want to ensure proper competition

Here's hopping they do the right thing and at least take away Sky's VOD exclusives on movies.

mersey70 · 09-02-2011, 11:29

Quote:

Originally Posted by Digital Fanatic

Yeah, it's on Digital Spy. The bit that interests me is the way Sky lock away On Demand rights that thay can't even use!.

Linkage HERE

Sky is making "excessive profits" from its Sky Movies service, the UK's competition regulator has said, hinting at potential forthcoming reform of the pay-TV films market.

I am 100% behind any investigation into ANY company charging too much for subscription TV services, or investigating any exclusivity 'lock in' periods with content

My fear is, like with the events with Premier League football, is that we will end up with yet another subscription service like we did with Sky/Setanta and end up being lumbered with another separate susbscription. It's never seems cheaper for the end user but seems to satisfy the competition people, job done for them.

I wonder how FilmFlex/Picturebox would react to yet another movie vendor being on VM like LoveFilm anyway?

We'll see.

Digital Fanatic · 09-02-2011, 12:07

Quote:

Originally Posted by mersey70

I am 100% behind any investigation into ANY company charging too much for subscription TV services, or investigating any exclusivity 'lock in' periods with content

My fear is, like with the events with Premier League football, is that we will end up with yet another subscription service like we did with Sky/Setanta and end up being lumbered with another separate susbscription. It's never seems cheaper for the end user but seems to satisfy the competition people, job done for them.

I wonder how FilmFlex/Picturebox would react to yet another movie vendor being on VM like LoveFilm anyway?

We'll see.

There is always that risk, I agree. Competition should work in the customers favour, but as you say... we'll see.

Chad · 09-02-2011, 19:34

Totally agree with the past few posts, competition should work in the customers favour. Personally I preferred when all football etc was on SKY Sports. All I had to worry about was 1 subscription, and everything I wanted to watch was in the 1 place. It's the same as the movie channels. Everything I want to watch is currently in my subscription. If things get broken up, and 2 or 3 different movie subscription channels are set up then I ain't going to be too happy.

mersey70 · 10-02-2011, 08:46

Quote:

Originally Posted by Chad

Totally agree with the past few posts, competition should work in the customers favour. Personally I preferred when all football etc was on SKY Sports. All I had to worry about was 1 subscription, and everything I wanted to watch was in the 1 place. It's the same as the movie channels. Everything I want to watch is currently in my subscription. If things get broken up, and 2 or 3 different movie subscription channels are set up then I ain't going to be too happy.

When any media outlet prompts an investigation under the guise of getting a better deal for their own customers I doubt it always is, I think it's often just to further their own agenda. It's naive to think otherwise in my opinion. If we do benefit then all well and good but we didn't with Premier League football and I doubt we will with movies.

I remember all too well when some bright spark in the late 80's/early 90's decided ITV should be opened up and insisted viewers would all benefit and we ended up losing a wonderful broadcaster like Thames Television and 'benefitted' from the genius that was Carlton Television.

Be careful what you wish for.

10-02-2011, 10:00

Sky having a complete monopoly and charging too much for movies because of it isn't a good thing is it? Suggesting we customers shouldn't wish for something better is just what Sky wants.

mersey70 · 10-02-2011, 10:12

Quote:

Originally Posted by ahardie

Sky having a complete monopoly and charging too much for movies because of it isn't a good thing is it? Suggesting we customers shouldn't wish for something better is just what Sky wants.

In theory of course it isn't.

But exactly the same was said regarding Premier League football and all that happened was we had to subscribe to Sky and Setanta, and sadly it was later proven two separate services were unsustainable. People don't seem to want multiple subscriptions.

If you want yet more separate subscriptions that will probably cost more then support these moves to the hilt, that's your choice.

I would prefer for Sky's prices to be reviewed not so much their exclusivity, making them understand that exclusivity comes with responsibility. Having packages here, there and everywhere dosen't seem to benefit us financially.

Price regulation of movies might though.

In my opinion.

Ignitionnet · 10-02-2011, 10:15

So long as this and the other regulatory actions on both Sky and BT are taken as part permitting News Corp to get their hands on the other 61% of Sky, and that Virgin's network is opened up on an active and/or passive level I'm cool with it.

Regulation of unbalanced markets is just fine so long as it's not unbalancing them the other way.

EDIT: We have one of the best pay TV packages anywhere, it's also one of the most expensive. There is always a concern however that we the customer will suffer in terms of quality of services in return for receiving them at a lower rate, just as happened with the highly regulated broadband market.