This will mean in the name of competition that the consumer will pay more for the same.

If Sky subscibers are paying too much then force them to lower the cost.
Sometimes a "monopoly" can be a good thing if regulated correctly. Rather than foisting competition that will not benefit the people that it would supposidly benefit the lowly consumer.

Yes but who else has the money to pay for these films? The BBC or ITV do not. As long as the market is segmented with Sky getting access for a period then the terrestrials getting access after 3 years at low rates so that license payers are not stung excessively then if Sky want to charge what they can then so be it. Though if you have ever seen the Sky Movies packages they are filled with repeats unless you opt for the on demand service. The other side is the movie industry. They need to increase returns to fund new films. Maybe the solution is to cap Sky's margin?