UK media regulator Ofcom has urged the Competition Commission to investigate the role of BSkyB's premium Sky Movies channels in the Pay-TV market.

Ofcom believes that Sky's dominance of the market is affecting the competition in the sector, restricting the customers from choice, slowing innovation and driving prices up.

In a statement to BBC News, the regulator, said: “We are concerned that Sky will maintain and exploit its market power by restricting the distribution of its movies channels and exploitation of subscription video on demand.

Ofcom said in its complaint that it was concerned about the manner in which major films are being distributed in the UK by Sky's premium film channels.

The regulator also said that it had attempted to find a commercial solution, but after discussing the matter with major Hollywood studios, it concluded that Sky was not willing to change its strategy.

Sky has already been subjected to regulatory action from Ofcom, having been ordered to reduce the prices it charges rival broadcasters for airing its Sky Sports 1 and 2 channels earlier in the year.