After launching an investigation into Sky's exclusive deals with the six major Hollywood studios, the competition regulator said it recognised that Sky should have been able to make "excess profits" in its early days because it took "significant investment risks", but concluded that "we would not expect such profits to persist for a significant period of time".
"It appears that Sky's excess profits can no longer be explained by the risk of its earlier investments," the Competition Commission added.
A BSkyB spokesman says: "We stand by our record in bringing choice and innovation to UK consumers. We believe that Sky's profitability today reflects its past investments and its success in delivering highly valued products to customers.
"The Competition Commission's movies investigation is at a preliminary stage and we will respond to its working papers as the process continues."
Sky and other interested parties have until February 25th to make submissions before the commission publishes its provisional findings in April.