Quote:
Originally Posted by denphone
So you agree in that prices are likely to rise then??.  |
Assuming that Sky and BT will have to pay more to screen the extra matches, then it is pretty obvious that those increases will be passed on. However, you still seem to be confused by what I have said about the impact of competition.
What I have said is that when the big global players such as Amazon, Netflix, Discovery, etc move in, we are likely to see more imaginative models which could lower prices to the consumer despite higher payments being made for the rights. I never said this would happen with the existing players, Sky and BT. We will have to wait until potential bidders with bigger pockets get stuck in. This might happen with the next bidding round or perhaps the one after, but it will happen. Prices to the consumer are so high at the moment because Sky and BT keep everything to themselves and charge as much as they can, and other operators are shut out of as much as they can get away with. These are the practices more associated with monopolies.
If there was more on-selling or distribution of rights to other platforms to show some of these matches, the cost to the winning bidders will come down. I cannot foretell when this will come about, but I am sure it will sooner rather than later.