In a statement, the Commission said the commitments address concerns over clauses in the studios’ studios’ film licensing contracts for pay-TV with Sky UK.
The clauses prevent Sky UK from allowing EU consumers outside the UK and Ireland to subscribe to Sky UK’s pay TV services to access films via satellite or online. They also required the studios to prevent broadcasters other than Sky from making their pay-TV services available in the UK and Ireland.
The Commission had concerns the clauses would threaten cross-border competition between pay-TV operators. They would also eliminate so-called passive sales to consumers outside of their licensed territories.
The studios are now committed not to apply the clauses in existing film licensing contracts for pay-TV with any broadcaster in the European Economic Area (EEA). They have also promised not to introduce such clauses in film licensing contracts for pay-TV with any broadcaster in the EEA.
Sky has made the same commitment in its own film licensing contracts.
The commitments will apply throughout the EEA for a period of five years across satellite and online, including video-on-demand.