Film studios respond to European antitrust allegations

Walt Disney Co. headquarters in Burbank.

Staff Writer

July 23, 2015 12:49 PM PT

While five of the six major film studios targeted by European regulators in an antitrust case considered their responses Thursday to what could eventually become a drawn-out legal fight, Walt Disney Co. vowed to fight the action.

The case, filed by regulators of the European Union, alleges that the studios and British pay-TV provider Sky UK have blocked consumers in much of Europe from watching U.S. films, television programs and other content.

The studios -- Disney, NBCUniversal, Paramount Pictures, Sony Pictures Entertainment, 20th Century Fox and Warner Bros. -- are alleged to have entered into improper licensing agreements with Sky UK. Those contracts prohibit viewers outside Britain and Ireland from accessing Sky UK’s programming via satellite or the Internet.

The case aims to remove barriers to the consumption of digital content across Europe. A Sky TV subscriber from London cannot watch a Warner Bros. film on his laptop while vacationing in Paris because the satellite TV service prohibits access using a practice called geo-blocking.

Burbank-based Disney touted its role as a “leader in embracing new and innovative digital technologies that bring its unique entertainment to families and fans worldwide,” and said it would oppose the action brought by the European Commission, the region’s executive arm.

“Our approach is one that supports local creative industries, local digital and broadcast partners and most importantly consumers in every country across the EU,” a Disney spokesperson said in a statement. “The impact of the commission’s analysis is destructive of consumer value and we will oppose the proposed action vigorously.”

Warner Bros., Hollywood’s biggest movie studio, offered a muted response.

“We are cooperating fully with the European Commission’s investigation,” a Warner Bros. spokesperson said. “It is premature to comment further at this time.”

Warner Bros., Hollywood’s biggest movie studio, offered a muted response. “We are cooperating fully with the European Commission’s investigation,” a Warner Bros. spokesperson said. “It is premature to comment further at this time.”

NBCUniversal responded in kind.

“NBCUniversal confirms that it has received the notice and will respond and cooperate with the European Commission,” a company spokesman said.

Fox, Sony and Paramount declined to comment.

Each studio faces fines of as much as 10% of annual revenue.

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Sky TV said in a statement that it would “respond in due course” to the European Commission’s case.

“The European Commission is examining cross-border access to pay TV services across a number of member states,” Sky TV said. “As part of its ongoing inquiry, we have received a statement setting out the commission’s preliminary views.”

Staff writers Jim Puzzanghera, Ryan Faughnder and Meg James contributed to this post.

Follow @DanielNMiller for film business news.

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