Regulator reprieves BSkyB over pay-TV films

The arrival of Lovefilm and Netflix in Britain has weakened the grip of BSkyB in the pay-TV movie market, the Competition Commission said yesterday, making it less likely that the regulator will intervene in the sector. The provisional decision reverses an earlier finding by the regulator, which said in August last year that BSkyB's large subscriber base gave it an advantage that meant potential rivals found it difficult to bid successfully for the rights to first-run Hollywood movies. The commission had then set out measures to make the market more competitive and break Sky's stranglehold. It has now changed its mind after seeing the Amazon-owned Lovefilm and Netflix enter Britain.