Ofcom published a consultation on March 31, 2010 in the light of the Pay-TV Review that lead to Wholesale Must Offer (WMO) obligations being placed on Sky Sports 1 and Sky Sports 2.

The Competition Commission will now look at whether the sale of rights to show movies from the major Hollywood studios in the first pay-TV subscription window in the UK and the wholesale supply of pay-TV packages including the core premium movie channels is in contravention of the Enterprise Act 2002.

Ofcom believes that the market areas represent distinct economic markets with a combination of features that keep consumer prices artificially high. These include the limited pool of genuine premium content from the Hollywood studios, the windowing system itself, and the bundling of SVOD (subscription video on demand) rights with those for premium linear channels.

For once we have a case of the regulator acting ahead of technology. BSkyB currently has no SVOD offer of the type practiced by HBO and Canal+. This is not surprising, given it currently has no television-based on demand service. But by purchasing rights it cannot immediately use, the regulator will want to know if the market is being distorted.

“We believe that we have reasonable grounds to suspect that the combination of these features prevents, restricts or distorts competition in these closely linked markets,” said an Ofcom statement. “In particular, the combination of the features identified creates a situation in which one player is enabled and incentivized to prevent, restrict and distort competition.”

Ofcom’s discussions with the studios indicated that a change in sales policies was unlikely, and it arguably faces a greater challenge than with sports rights, given that these are practices found across the world.

The Competition Commission could now seek to change the way in which movie rights are bought and sold. This could arguably affect UK cable’s major supplier of VOD content, the Disney-Sony owned FilmFlex, as well as Sky. It is within the powers of the Competition Commission to restrict the ability of firms to aggregate different types of rights or requirements to make the sale process more contestable.

It could also intervene to reduce Sky’s ability to act on incentives to exploit market power, by requiring it to provide wholesale access to linear and SVOD premium movie content on regulated terms as has been done with Sky Sports.

Such a move is likely to hasten the launch of a Sky VOD service that could take place in the autumn, once the satcaster’s Sky+ HD receivers are connected to the internet for the delivery of VOD content.

A spokeswoman for Discovery Communications Europe confirmed to Broadband TV News that the broadcaster had been issued with a licence, but said there was nothing further to announce.

Earlier this year, Discovery Communications, Sony and Imax announced plans to launch a 3D television network in the US. A launch is scheduled for early 2011.

The 24-hour network headed by Discovery executive VP and CEO Tom Cosgrove will screen a mix of natural history, space, exploration, engineering, science and technology programmes.

Should a European launch be forthcoming it would be the first third party channel to join the Sky platform after its own Sky 3D, which was recently given a consumer launch date of October 1.

In March, Sky reopened in launch queue to 3D and HD broadcasters. 3D channels will be required to broadcast no fewer than six hours of non-repeating programmes during a seven-day period. This compares to 12 hours for other TV and radio channels listed in its EPG. Sky says the minimum may be increased as additional 3D content becomes available.

Growth of 10% in its US networks and 15% internationally helped Discovery Communications grow revenues by $98 million (€74 million) to $963 million. Operating Income Before Depreciation and Amortization (OIBDA) grew 18% to $455 million.

In a statement the BAI reiterated its disappointment that none of the three applicants to the 2008 licensing process had been able to bring matters to a satisfactory conclusion.

The Authority and its predecessors have been battered by the failure of successive commercial operations, including consortia led by Teracom (Boxer) and telco Eircom, to take up licence offers.

Public broadcaster RTE is now pressing ahead with plans for a two-multiplex system, covering 98% of the country, and expected to be on-air this autumn.

A review of the circumstances surrounding the failure saw all three applicants highlight the economic circumstances facing Ireland and made particular reference to the role of RTÉNL.

The Authority said that in order for a future commercial launch to proceed it would be necessary for it to engage formally with transmission services provider and to exercise a statutory mediation process in the event of disagreement on the terms of the transmission arrangements between RTÉNL and any future successful applicant.

A review of when commercial services might launch will be taken in 2011 with the possibility that the Authority might then invite expressions of interest. This means a competition could be held during 2012, with a view to a commercial multiplex going on air during 2013.

ProSiebenSat.1 Media AG and Media Group RTL Deutschland GmbH, through its subsidiary RTL interactive GmbH, are planning a joint venture for the operation of an open technical platform for catch-up TV. Public broadcasters will be welcome to join the platform, which will offer programmes up to seven days after their original broadcast.

Programmes will be streamed, rather than made available to download. Access to the content will be free of charge to the viewer. The programming and marketing of the content will remain in the hands of the respective broadcasters. The planned platform is subject to approval by the competent European Commission Directorate General for Competition.

For operation of the platform, ProSiebenSat.1 Media AG and RTL interactive GmbH are planning to set up a joint company that will take care of the necessary technical services such as hosting and streaming.