Thread: TiVo Medium term strategy for virgin media
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Old 11-09-2013, 20:38   #12
OLD BOY
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Re: Medium term strategy for virgin media
Quote:
Originally Posted by muppetman11 View Post
My point still stands why would any movie service pay a decent price for first run rights if the studios movies were available on numerous movie services , a system like that would never work. Like it or not exclusivity is here to stay , if people feel a certain price is too much the simple answer is don't pay it , if enough cancel a particular service the provider is then forced to review its pricing and packages.
No it's not! Things change over time.

Let's say Sky currently pay £20m for an exclusivity deal. If an offer comes through at £12m for non exclusivity, the remaining £8m can be made up with other platforms. Increased competition will enable prices to fall as more sales of the programming are made, and we start a virtuous downward spiral of prices. Good old competition - that's how it's meant to work.

Studios will only agree to exclusivity deals if it pays them to do so. As more players come in, it will no longer be in their interests.
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