Sky making 'excessive profits' from movies

[roachieuk]

BSkyB is making “excessive profits” on its Sky Movies service, Britain’s competition regulator has found, prompting analysts to suggest the broadcaster may be forced to cut its profit margins

In a submission published on the Competition Commission’s website, the regulator finds early evidence that BSkyB “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”.

The findings, contained in a document entitled “Profitability of Sky”, are part of regulatory scrutiny of the pay-TV market, including the price charged for films.

Observers said the Commission’s early findings, if they were to be upheld in a final report, could have ramifications for BSkyB’s exclusive deal with the big six Hollywood studios – as well as the wholesale price the broadcaster charges other TV companies to show its 10 film channels.

BSkyB was forced to cut the wholesale price for sports programmes after similar commission findings last year.

The Commission, using data from consultants Oxera, also found that “Sky’s profitability is not declining and the evidence we have seen suggest that its profits in the near future will increase”.

Sky making 'excessive profits' from movies - Telegraph

I never and never will use sky box office and dont have any movie packages as they are all crap really

 

[The Dentist]

Its a private company they should charge what they want. Don't know why the government getting involved. It would be better if they encouraged rival companies to actually offer a rival service so they can compete with pricing. I admit I rarely watch it as the repeats are worse than DAVE. Government should be concentrating more on bbc rather than sky.

 

[thebigman]

It matters becuse they have a monopoly and use it to stifle competion. Murdoch hates the bbc because it gives away content that he would have us pay for.

thebigman