Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
6.148 However, this innovation will only take place if the right content is available, with a
payment mechanism that is convenient for consumers. There are two sets of rights
that are relevant in this context:
210
� VoD services sold on a Pay-Per-View (PPV) or Pay-Per-Download (PPD) basis.
These rights are widely available, on a non-exclusive basis. They have the
attraction that they are available in an earlier window than existing pay TV
services. However, despite this fact, services based on these rights have thus far
had a limited impact on the market, a point which is illustrated by the relatively
low value which retailers continue to put on these rights.
� VoD services sold on a subscription service (SVoD). At present the movie studios
bundle these rights with the rights to show movies on subscription linear
channels, and these bundled rights are acquired on an exclusive basis by Sky.
As discussed in more detail below, Sky does not currently however have the
capability to exploit these SVoD rights on its satellite platform, and it does not
have the incentive to develop a product based on these rights to be supplied to
competing TV platforms. Sky therefore only exploits the rights via its PC-based
Sky Player application, which has thus far had limited impact on the market.
6.149 In order to confirm the current position regarding the current licensing of subscription
and SVoD rights, the process by which these were awarded, and the possibility of
future change, we have sent formal information requests to all six major Hollywood
Studios. We have also obtained copies of the current contracts between the studios
and Sky. The current position is summarised in Figure 57 below.
Figure 57 Sky’s SVoD rights with major Hollywood studios
Studio Exclusive SVoD rights Restrictions
Sony [ � ] [ � ]
Paramount
20
[ � ]
th Century
Fox
(Note: Fox is
owned by News
International,
which also has a
39% stake in
Sky)
[ � ] [ � ]
Disney [ � ] [ � ]
Universal [ � ] [ � ]
Warner [ � ] [ � ]
6.150 We conclude that:
� Sky does currently hold the SVoD rights for all six studios.
� [ � ].
� [ � ].