Quote:
Originally Posted by 1andrew1
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.
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Just like to say Andrew excellent post as usual , I'm interested to know do you think at some point in the future we could see streaming services bidding for key sporting rights ?
I'm thinking along the lines of Apple , Google etc bundling a free apple TV device with annual or monthly season tickets to help bring more people onboard to their own eco system and help with selling companion products such as iPad/iPhone etc.