Monday, February 7, 2011

A move never to be seen in Canada

BSkyB’s films profits too high, says watchdog
The Competition Commission has reported that British Sky Broadcasting is making “excess profits” on its Sky Movies service, prompting analysts to say that the broadcaster will be forced to cut its margins. . .

"BSkyB’s exclusive deal with the six big Hollywood studios will come under scrutiny, as will the wholesale price that the company charges other broadcasters to show its 10 film channels, experts said.

"The commission said Sky Movies had consistently earned excess profits that could not be justified by the risks taken early on in its exclusive contracts. After a similar finding by the commission last year, BSkyB had to reduce the wholesale price it charges other broadcasters for sports programming. . . "
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