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No they have bought a package they obviously got so cheap as nobody else wanted it.
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https://www.premierleague.com/news/1225124 Don't forget Amazon already has 200+m prime customers to sell too. ---------- Post added at 15:58 ---------- Previous post was at 15:56 ---------- Quote:
They see what interest they can get with this lesser package and decide whether they will make further bids for rights in the future. They may not, but by buying a package of matches, they have now shown their hand. They are interested, it's just a case of whether they stay interested or not. |
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They are looking to make Prime more appealing that's a whole world different to taking the lot.
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Indeed it is, but there are multiple ways they can package the football and sell it, Amazon are good at selling stuff. I'm sure if they ever obtained global rights in the future, they might be able to sell a "few" football shirts, as but one easy example of how to make money from this.
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So why haven't they captured NFL , NBA , MLB , NHL in any numbers ?
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Edit: Just came across this article: http://www.sportspromedia.com/news/a...on-recruitment and the dipping the toes into water remark came from here: https://deadline.com/2019/02/amazon-...ca-1202556831/ From the last paragraph of that article: Quote:
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You don't know what Amazon or the likes have planned so don't act like you know things you do not. |
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I doubt very much whether money came into it. |
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Having money to do something doesn’t equate to it being a good investment opportunity. It’s a fact Amazon have money, it’s not a fact that buying Premiership rights is an effective use of their ample funds. |
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I have no inside information on this, it is simply what I believe may happen. No need to big it up into something it isn't. ---------- Post added at 19:40 ---------- Previous post was at 19:36 ---------- Quote:
It is nothing to do with money. That is far too simplistic an argument and it is not the problem you make it out to be. |
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It’s hardly a simplistic argument at all. It’s an incredibly complex one, but if the potential customer base isn’t there (either by there not being enough demand, or inadequate technology) £5bn is a lot to gamble with such uncertainty about ever seeing a return.
Is the broadband picture really going to change much by 2021? |
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In case you hadn't noticed, superfast broadband is now being rolled out more speedily throughout the UK, and it will be a completely different picture by 2022. |
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As you've already been asked what's going to have changed by the next rights auction ? broadband fast enough to stream Sport is already widely available how do you think people watch the Full HD BT Sport's app now ?
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Superfast broadband availability is at 94% in the OFCOM connected nations report. If Amazon’s business model is made or broken by the remaining 6%, which will of course be the hardest to reach for operators, then it’s precarious to start with. Plus the UK Government commitment is to reach full coverage by 2033. |
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If you bothered to read you would see i have said "it's a big if" about Amazon or Facebook getting rights, also i stated earlier in the thread if Amazon did get rights they would likely make a pass for it where'd it incure a extra charge. |
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Your first foray into this thread today was a misguided attempt to imply I didn't know what I was talking about when it was you confusing the difference between having the money and it being a worthwhile investment. It's a monumental effort to return in excess of £5bn over three years, indeed neither Sky or BT do this alone. Sky have built up a customer base and rights portfolio over 30 years. BT have status as an incumbent in telephony/broadband and used the rights to consolidate their positions in both markets. The facts are the value of the rights fell last time out and Amazon made no meaningful bids in the first round of bidding. Unless someone can point out how the market will radically change between now and 2021 I see no reason to change my stance on this. If the aim is to sell Prime and gain market share for their shopping website this could be far more easily be achieved with lower value sports rights, at lower risk and higher return on investment. |
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I don't pluck stuff out of the air to try to make myself look clever, i do agree with some of what you have said especially regarding prime which brings me back to what i have said before "if and it's a very bif if Amazon do go for more football rights i think they would launch a pass at additional cost" there is a clue in there. The market certainly isn't going to change majorly within the next 2 years i completely agree with you, however we would be foolish to underestimate the streaming giants such as Amazon, also i shall repeat what i have said before Facebook is one to watch i'm not going to go into further detail about that just yet. |
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“I know something you don’t know, na, na, na, na, na.”
I grew out of that in primary school. If you’re claiming credit for having the epiphany that Amazon can’t recoup the value of the rights selling £79 a year subscriptions to Prime (it’d take nearly every single household in the country to subscribe) then fair enough, thanks for your overwhelming insight. Facebook have exactly the same problem. I ask again in this thread what exempts streaming companies from basic economic principles? |
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This discussion is over i don't talk to childish people. |
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Oh well... if with your extensive knowledge of streaming you find out anything useful be sure to come back and let us know. :)
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As for superfast broadband, coverage increases substantially year on year and Boris Johnson has already committed to speed up the process significantly. We should be virtually there by 2022. ---------- Post added at 09:18 ---------- Previous post was at 09:13 ---------- Quote:
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Interesting article here on the popularity of the new Disney + streaming service in the US. I suspect there will be similar interest here although I will only go for it if there is plenty of choice on the Hulu stream.
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You've not supplied a link but I'm guessing it's another digital marketing company doing a survey.
On the subject of surveys I see 12% of men think they'd score a point against Serena Williams at tennis. |
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"Would you pay $10 a month for A?" Isn't the same as sitting half a dozen similarly priced options then some premium options in front of someone and asking if they want to pay for all of those instead of/in addition to a basic TV subscription, broadband and other services. People don't have infinite funds, which the simplistic question above doesn't grasp. |
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I haven't seen anything about Disney+ in uk either apart from 2020 launch. |
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https://www.rapidtvnews.com/20190713...#axzz5tgK12maF ---------- Post added at 20:26 ---------- Previous post was at 20:25 ---------- Quote:
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Haha the stuff I spout from the top of my head. Coming from the man who litters his posts in hypothetical nonsense and can't respond when challenged on the flaws in his vision of the future.
Still waiting for how Amazon's business model hinges on the 6% who can't get superfast broadband or just how much Amazon Basics tat they'd have to sell to cover the biggest loss leader in human history. |
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You've not even went over it once! The least you could do is at least attempt to justify your positions given you feel so strongly about this. We've been reading about this for years after all.
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I imagine HULU and Disney+ would offer seperate packages the only one i know for certain of launching in uk though is Disney+ as most of HULUs content is already with other providers, ofcourse things can change though. |
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MB Sources says "Comcast keen to extend Nowtv's offerings."
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Sky's content is the 4th most watched in the country behind BBC, ITV and Channel 4 according to the BARB, so stands out among the pay-tv providers on it's own and the Virgin Media platform. Ideally positioned to make Now TV take on any third parties in the streaming market. Add in it's broadband product and mobile products and it's a range of services that are 'must have' for any household. |
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Rights in other countries are sold separately and are an area that the PL has been successful in increasing the income from significantly. |
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Tens (hundreds?) of billions per year just to enter an already crowded market and for what kind of profit margin? Any profit margin at all? Liberty Global looks a snip at $20bn by comparison - and has access to most of the major sports rights anyway via third parties. Give everyone free Prime if they take all three services. The risk remains with the primary rights holder. |
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There are so many experts on here.....:rolleyes:
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But I have to ask again we are half way through July! It’s clearly summer but yet virgin media continue to say “we have no dates... summer time launch” for amazon prime |
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I've just seen on the Virgin Media site that Amazon Prime should be on your V6 box next monday (July 22nd)
https://www.virginmedia.com/virgin-t...e-on-virgin-tv |
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You seem to have ignored the fact that the Premiership football matches are mighty popular in some other parts of the world (eg India),as is cricket. There is definitely a global sports market to be tapped into here, which you don't seem to appreciate. Take off your blinkers, jfman, and just look at the opportunities out there. Look at the bigger picture and you will see further than the end of your nose, which is not that interesting really. Although I suppose a really big nose is hard to ignore. Do you have a big nose? If so, sorry, no offense. :D :bump: ---------- Post added at 20:23 ---------- Previous post was at 20:21 ---------- Quote:
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If you really think millions of Indians are sitting these making pay-tv choices off the back of carrying the Premiership I think you'll be quite surprised. For the realistic valuations of minority sports see the failure of Eleven Sports and La Liga. While the Premier League may be more popular worldwide than La Liga, you are still talking about in the tens/hundreds of thousands in most countries. Little surprise, in the absence of any coherent argument, you've just resorted to being out and out offensive. FYI I think it's quite clear I was disputing the definition of 'summer' jovially with denphone not commenting on the expected arrival date. |
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The fact that they have now got other sports onto their platform too, would at least, would you not agree, that they are serious about sports and could go head-to-head with Sky over rights in the future, if they chose to do so? ---------- Post added at 21:12 ---------- Previous post was at 21:08 ---------- Quote:
Sky has 10 million+ pay tv subscribers, Amazon has 200+ million prime customers and a lot more who purchase stuff on their site. ---------- Post added at 21:14 ---------- Previous post was at 21:12 ---------- Quote:
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What's the model though? Quote:
https://www.statista.com/statistics/...y-penetration/ That arc is going up faster, not slower, and including it's cut-price Premiership packages for the next three years will only see that rise further (especially with it being Christmas). What if in three years time it's at 12 million and it's cost them next to nothing to achieve it. Are the remaining 13 million best reached by £5bn outlay? Or could they just launch a 5G MVNO and bundle that in as well? |
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Not sure I understand your case here, jfman.
You mention 25 million homes, but 25 million homes don't take Sky Sports, so I don't understand why you quote that figure. UK Prime subs are already higher than those paying for Sky Sports in the UK (I think??), so the quickest way for Amazon to make the rights pay would be a direct conversion of those Sky and BT customers paying for sports over to Prime. But there are other ways they could do it too, like I mentioned the other day from targetable ads, to flogging stuff from their website. Why do you think Amazon (or any other streamer, if they were to be the successful bidder) would fail if it gained sports rights, when it's been so good for Sky and BT? I doubt Liberty would ever bid on its own for rights, as it doesn't have the dosh, neither does Netflix, or the inclination to go down the sports route. |
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If the aim is cross selling Prime and using that to drive sales on the website (and profits that way) then 25 million Prime subscriptions is surely the target for the business - everyone buying as much as they can all the time on Amazon. How do we get from 6 to 25 (or as near 25 as possible, I accept 100% is unrealistic in all cases) in the most cost effective way? To bring football back in: would football be a driver to deliver that, or as close to that, as possible at a cost in excess of £5bn? Quote:
On day 1 you’re losing money straight away until you reach the break even point. You’d really be looking at getting 6 million subscribers to pay in excess of £25 a month to cover the costs. You don’t have a 7 day a week channel and don’t have content in half of May, all of June or July. I don’t think that’s so straightforwardly achievable anyone would take the gamble. I don’t think there’s “new” subscribers to the market out there vying for this price point - it’s more expensive (twice the price!) than the 9 month Now TV pass that floats about and it has Football League, F1, etc. I think if it was achievable the Premier League would have done it themselves on a platform neutral basis as far back as the ITV Digital days. The risk of a new entrant was deemed so low by Sky they bid even less than last time and won a better share of the rights. I think I’ve said on this forum (or possibly on another) a new entrant needs a five/ten year window to operate without the uncertainty they are left in year 4 scrambling for a new business model having lost the rights a la Setanta. |
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You're basically saying that you reckon Amazon wants every UK home to be a Prime subscriber and that's something I agree with, based on what Amazon have said themselves. Amazon have said they want us all to view them as like a utility which becomes a "must have" service. How do they go from 6 to 25?? They already have the 25. Something like 90% of UK internet users have bought something from Amazon, so they already have the card details of the other millions more people and they can market to those other people and try and covert them to Prime customers. Quote:
What we don't know is how many today already take both Sky Sports and Amazon Prime. ---------- Post added at 23:47 ---------- Previous post was at 23:33 ---------- Quote:
Sports is still priced separately, as far as I know and is not included in bundles. (I think, I don't take sports) Quote:
Amazon don't need a channel, they have their streaming service and could bundle other sports into the package. Quote:
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Interesting that you mention ITV Digital. They don't exist because Murdoch killed them. His Israeli company broke ITV Digital's encryption and then leaked it all on the internet, thus destroying the business. Leaving aside football for a second, but the general argument that I am making about the streamers and especially the tech giants, is they are the Murdoch of today. They're the sharks and they're the ones with the deeper pockets, which is exactly why Murdoch sold out. Who's bigger out of these two groups: Comcast AT&T Verizon Disney Apple Amazon One group is significantly larger than the other and its why if Amazon (or any other tech co) wants to compete against Sky on sports or anything else, they can and potentially destroy their business. |
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https://www.theregister.co.uk/2012/0...doch_panorama/ so not so much that issue but a poor business model! Quote:
Comcast want to get into the second group (as do all the big players from the previous generaton see Disney+) thus why they paid so much for Sky. The NowTV brand is working for budget subscribers in the UK and Sky caters for the premium market. The Sky Sports Brand is worth a lot but Sky Sports itself is a dwiddling market with less than 50% of Sky's 10 Million customers taking Sports nowadays and it continues to fall. The problem is (and I think Amazon and competitors know this) that the people who pay the big money for Sports are a dying (no pun itended) market. Young people are less likely to pay premiums for live Sports since they can watch near-live clips on social media (or in UK on Match of the Day). |
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If every single household in the country added a £10 sports add on to Prime that'd only return £7.5bn in revenue once you strip the VAT out. An entirely unrealistic prospect I'm sure we'd all agree.
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That was my thinking, old boy, coupled with targeted ads where Amazon know what people like and then sell adverts (making money) to specific advertisers and then make more money by flogging whatever goods from their site and that's all assuming that Amazon didn't just charge a subscription rate similar to what Sky/VM/BT do now.
I don't see how a trillion dollar company with more data on people than anyone else, will struggle compared to an existing pay tv company such as Sky. And don't forget all those overpriced football kits to be flogged by them too along with a multitude of other merchandising. As I said, the sports pay tv market is already there, created by MUrdoch. The customer base is already there, most people already have smart tvs, firetv sticks etc to access Amazon's Prime app. It should be a "doddle" to convert those Sky/BT/Vm sports customers to themselves. And yes, it does depend on how its packaged, which I think Amazon will need to undercut existing prices to encourage the wholesale move of sports customers to them. |
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So why isn't Amazon even competing with Netflix a company it could easy outspend.
Amazons Video offering is generally inferior to that of Netflix. |
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Old Boy says he spends £500 a year on Amazon, but what's the profit margin? Is he going to spend even more if they sold football at a loss out of kindness? In reality there's diminishing returns from this where the set of rights they have will gain a lot of little outlay. Substantially more rights will cost more to achieve fewer core subscribers. Then we come back to why England? Why not North America? Germany? Italy? Spain? |
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If anything despite my previous comments we might get Amazon doing a deal with say BT to get BTsports as part of their addon channels packs. |
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Look back at Amazon's origins. How many independent book stores are there now? I think that's the reason why they're getting involved in sports. Quote:
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Beware falling for the hype - the value of the the UK rights tell last time around. :) The reason Amazon are getting involved in sports rights? At the levels they are investing it's worth testing the market. It ropes people in at a low price point and they can achieve almost every positive you state regarding cross selling and promotion at a fraction of the cost. Amazon analysed the risk: didn't bid. Netflix: same Facebook: same Google: same Sky analysed the risk of losing to any of the above: bid less. You're all wasting your talents on this forum when there's billions to be made out there and executives lacking vision. |
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Now, now, Den. There's a long time between now and heat death of the universe.
A lot could happen. Sky Atlantic on Virgin, Premier League on Google... |
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If the Amazon's object is to get more Prime subscriptions has anyone got the breakdown of
1 number of current Prime subs which already have sky sports? 2 number of current Prime subs which already have BT sports? |
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The problem with Amazon is that want to park their tanks on everyone's home and they may ultimately became master of nothing. ---------- Post added at 16:39 ---------- Previous post was at 16:37 ---------- Quote:
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Amazon prime on Virgin Media from 22nd July
https://www.virginmedia.com/virgin-t...29-fullhouse-A |
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Exactly.. |
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NOTE: At time of posting Media Boy HQ do not know the real price. |
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Monday.
---------- Post added at 22:21 ---------- Previous post was at 21:47 ---------- Oh dear. Netflix shares down 10%, subscriber growth half what they expected. Subscribers numbers DOWN 130,000 in the United States. https://www.theguardian.com/media/20...growth-targets That’s without all the exciting competition that Old Boy promises us. |
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The other problem is how do you combat it , if you spend lots more on original content the subscriber is then handed even larger increases in subscription costs leading to higher churn. |
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Netflix need to establish a back catalogue, service $20bn debt and still competitively price their product. That’s a fundamentally broken model by itself. The value is in the subscriber base and the potential tax efficiencies around the debt to a bigger player in the field. I’d expect Netflix to sail around uncontroversially until swallowed up - I doubt the Premier League can expect a “blow Sky out the water” bid in 2021 from Netflix. |
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I don't think Netflix were ever interested in bidding for the EPL rights, or am I wrong in saying that? ---------- Post added at 00:57 ---------- Previous post was at 00:52 ---------- Quote:
Maybe so, but if you read down a bit in that article, Netflix go on to say this, Quote:
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I think Kodi maybe reducing subscribers too, I know it is the reason I don't pay for Netflix.
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If they get those 7m subscribers despite enhanced competition that’s good news for the business model. Thats a big “if” from this armchair. |
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He asked about Virgin customers, not Amazon customers. |
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