The UK”s Competition Commission has confirmed its view, first outlined in May 2012, that Sky TV”s acquisition and distribution of movies in the first pay window does not adversely affect competition in the UK”s Pay-TV retail market.

While acknowledging that Sky is currently in a strong position thanks to its deals Hollywood”s major studios, the CC expects rival services like LOVEFiLM and Netflix to become more serious competition for first pay window rights in the future.

Laura Carstensen, Chairman of the CC”s Inquiry Group, said: “We have seen significant change in pay-TV movie services in the course of our inquiry and have considered the implications of these developments carefully in reaching our final views. It is clear that consumers now have a much greater choice than they had a couple of years ago when our investigation began. LOVEFiLM and Netflix are proving attractive to many consumers, which reinforces our view that consumers care about range and price as well as having access to the recent content of major studios; and the launch of Sky Movies on Now TV, which ends the requirement to buy Sky Movies alongside a basic pay-TV subscription, is a further significant development. Overall, we do not believe that Sky”s position is driving subscribers” choice of pay-TV provider.”

BSkyB welcomed the Competition Commission”s finding. “Sky considers there to be overwhelming evidence that UK consumers are well served by strong competition between a growing number of TV providers, including those offering movies. As this dynamic marketplace continues to evolve, we remain committed to innovating for customers so that UK consumers to benefit from choice, value and innovation.”