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Originally Posted by martyh
the HD and red button service is a marketing strategy designed to attract customers ,any good company will have unique selling points that they wouldn't other companies to have access to
what seems to be forgotten is that most of skys' sports coverage is done by sky itself and not bought in, they then sell it on to other tv companies at a profit ,if the only argument is the amount of profit that sky make on these deals then BT and Virgin should start having their own coverage thus making for better competition
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Just because you don't want other companies to have access to them it doesn't mean it's right that they don't. Just ask microsoft.
Yeah because it's trivial to start up a sports channel that's comparative to sky sports.
Lets just take a look at what happened to setanta when they tried to compete?
Setanta underlines exactly why Sky's market dominance is bad, the cost to market for a sports channel is insanely high, and there's a huge market apathy towards multiple providers of the same content, people don't want to pay for multiple channels for their premier league football. They want to pay one company, and have them provide it all, so anyone that doesn't have a majority of content will never gain a major market share.
Lets look at the movie channels as well, Sky have deals with all the studios, if you want to offer a range of movie channels like Sky's you'd have to outbid them for all of these deals, that's cost prohibitive when you're going up against a company that through the benefit of being first to market has developed a huge customer base and huge revenue. They don't even utilise most of the rights that they hold from movie studios (such as subscription on demand rights for the movies on their channels, if VM held the same rights as sky not only would you have the movie channels but you'd also have access to the movies played on them on demand).
Being first to market does not give you the right to dominate that market.
---------- Post added at 12:15 ---------- Previous post was at 12:13 ----------
Quote:
Originally Posted by martyh
so why don't BT stop sky using their network? that is not a very good argument. BT were a monopoly at the time and used sky just as much to cement their position in the market place .It was a partnership deal advantagious to both companies
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BT can't stop anyone using their network, they have a legal obligation to allow ANYONE that wants access to their network access to is, such is the downside to having a monopoly. Sky are now going to learn that the laws that helped them in broadband are also going to hinder them in TV.