Netflix (NFLX), LOVEFiLM May Be Subject of Wider U.K. Antitrust Probe
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Netflix (Nasdaq: NFLX) entering the U.K. might have been the best thing to happen to... BSkyB.
According to reports out Wednesday, the U.K.'s Competition Commission (which opened a probe last summer into whether BSkyB's content deals with major Hollywood studios was anti competitive) might widen its probe to include Netflix and Amazon's (Nasdaq: AMZN) LOVEFiLM.
BSkyB recently struck deals with studios Disney, Warner Bros, Paramount, 20th Century Fox, Sony Pictures and Universal, drawing scrutiny of antitrust agents in the U.K. Another hearing on the matter was scheduled to occur in July, but with Netflix and LOVEFiLM gaining more ground in the streaming content arena, the Commission may determine further evaluation of competition may be needed.
According to the Commission's updated report: "We recognized in our provisional findings that, were developments in the market to occur, it would be necessary to take them into account before reaching our final views. We are considering their implications, alongside other evidence received since the provisional findings, both with regard to our assessment of whether there is an provisional findings on the movies on pay TV investigation in August 2011."
Shares of Netflix are indicated for a slightly lower open Wednesday.
According to reports out Wednesday, the U.K.'s Competition Commission (which opened a probe last summer into whether BSkyB's content deals with major Hollywood studios was anti competitive) might widen its probe to include Netflix and Amazon's (Nasdaq: AMZN) LOVEFiLM.
BSkyB recently struck deals with studios Disney, Warner Bros, Paramount, 20th Century Fox, Sony Pictures and Universal, drawing scrutiny of antitrust agents in the U.K. Another hearing on the matter was scheduled to occur in July, but with Netflix and LOVEFiLM gaining more ground in the streaming content arena, the Commission may determine further evaluation of competition may be needed.
According to the Commission's updated report: "We recognized in our provisional findings that, were developments in the market to occur, it would be necessary to take them into account before reaching our final views. We are considering their implications, alongside other evidence received since the provisional findings, both with regard to our assessment of whether there is an provisional findings on the movies on pay TV investigation in August 2011."
Shares of Netflix are indicated for a slightly lower open Wednesday.
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