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BSkyB faces blockbuster price fixing enquiry

Satellite television operator BSkyB’s exclusive rights to blockbusters from all six leading Hollywood film studios is to be investigated by the Competition Commission over fears from Ofcom that it could “distort” the market.

A previous investigation has already forced the broadcaster to lower the its wholesale price for Sky Sports 1 and 2, leading to speculation that the latest investigation may similarly cut film prices.

Ofcom also expressed concern over BSkyB’s clout in the video on demand sector, fearing that the channel is gearing up to transfer its dominance over linear channels to new web based services.

BSkyB accused Ofcom of intervening in a sector in which consumers are “well served.”

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