Quote:
Originally Posted by howardmicks
That's true Harry but its cheaper buying off 1 provider then 2
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That depends though doesn't it.
A lot rides on the quality of the rights available as much as anything.
As I see it, most people who subscribe to Sports channels, do so:
1. to watch their team
2. to watch the best games of other teams
The old system where Sky had all the best games and ESPN offered "off-cuts", Sky knew they had every football fan wanting to buy their package because ESPN was only going to carry a few games of a fans team, plus unglamorous matches in an unpopular 5.30pm sat slot.
Now, BT have 18 x first picks so they can satisfy the 2nd element of why people subscribe to sports channels. (Plus they are making them available very cheaply in the right scenario).
One would assume BT will bid for more rights at the next deal. Say, hypothetically that they acquire even more rights, say 60 games to 96 games on Sky. With again 18x first picks.
If they still charge significantly less than sky, people may be tempted to go for BT knowing they are likely to see an average of 6 games of their own team plus 18 of the best games. Sky may have to reduce prices.
Taken to the extreme, a scenario I suggested earlier, if BT acquire half the rights, 50%, 78 games each. If they then charge less than Sky, I don't see how Sky can afford not to match BT's prices.