EU Regulators Investigate US Movie Studios Over Paid Content Access Restrictions

Strategic Insights -

European regulators have opened an investigation into several US movie studios, accusing them of improperly restricting European viewers from accessing paid content outside Britain and Ireland. The investigation targets Walt Disney, Comcast's NBCUniversal, Viacom's Paramount, Sony, 21st Century Fox, and Time Warner's Warner Bros., alleging that their licensing agreements with British broadcaster Sky UK prevent consumers from accessing pay-TV channels in other EU countries. This decision follows a similar antitrust claim against Google, which allegedly pushed its own service over rivals in search results.

Key Takeaways:

  • The European Commission has launched an investigation into US movie studios, including Disney, Comcast's NBCUniversal, Viacom's Paramount, Sony, 21st Century Fox, and Time Warner's Warner Bros., for allegedly restricting access to paid content in the EU.
  • The investigation focuses on licensing agreements between these studios and Sky UK, which prevent consumers from accessing pay-TV channels in other EU countries.
  • The European Commission claims that such agreements eliminate cross-border competition between pay-TV broadcasters and partition the internal market along national borders.
  • Disney shares ticked 0.3% lower in the stock market following the news, while Fox slipped 1.5%, Comcast fell 2.4%, and Time Warner dipped 0.9%.
  • Sony was the only studio to see an increase, with shares up 3.2%.
  • The investigation comes after the EU charged Google for allegedly pushing its own service over rivals in search results.
  • NBC Universal has stated that they will have the opportunity to formally respond to the charges and are communicating constructively with the European Commission.

Statistics:

  • 0.3%: The decline in Disney shares following the news.
  • 1.5%: The decline in Fox shares.
  • 2.4%: The decline in Comcast shares.
  • 0.9%: The decline in Time Warner shares.
  • 3.2%: The increase in Sony shares.
  • 7: The number of US movie studios under investigation, including Disney, Comcast's NBCUniversal, Viacom's Paramount, Sony, 21st Century Fox, and Time Warner's Warner Bros.

Sources:

  • Investor's Business Daily
  • USA Today
  • European Commission
  • Investor's Business Daily, Inc. (Copyright 2015)