Quote:
Originally Posted by passingbat
But as a potential counter to your argument, If BT insist on £16 and that price puts so many people off that hardly anyone subscribes, BT could be better off accepting a payment from VM of, say, £4 per XL customer. BT then have a guaranteed income from VM which could be more than a few people paying £16 per month, which will fluxuate monthly, assuming that it is a minimum 30 day contract like Sky Premium channels.
Haven't a clue what the real figures would be, just for example purposes.
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Although the point of argument was to counter arguments such as the one you now suggest and we can run around in circles with this forever.
The £16 figure was just an example anyway. There's no doubt that by discounting the product that BT would then get a guaranteed income stream, there's nothing wrong with that argument. But if they see their Sports Channels as a premium product, convincing them to offer it at a discount may not be as easy as it seems.
You put forward an argument of what if hardly anyone subscribes? but it's equally likely that sports fans will reach deeper into their pockets and subscribe. Their fault, but that is what they usually do. Unless BT offer it as a premium channel they won't know how many people will subscribe.
Keeping it as a premium channel with special offers on their own platform could drive users to that platform. Obviously one of the things they would wish to do after such a large investment.
In reality there could well be a compromise and BT could well agree to a discounted rate per subscriber for carriage on the XL pack. They could offer it for, say, £15.99 per subscriber.