Quote:
Originally Posted by OLD BOY
The whole idea of competition is that it drives prices down.
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The whole idea of holding auctions, which is what most sports rights sales are, is to drive up prices, not drive them down.
Market competition that drives prices down occurs when two products or services can easily be substituted for one another eg petrol from Esso or Shell. However, this is not the case in sports rights as they are sold on an exclusive basis so offerings from Sky, Eurosport and BT Sport are not easy to substitute for each other.
However, if BT acquires more Premiership rights in the next auction, then it may become more easy for more people to substitute BT Sport for Sky Sports and price competition may then occur.