Quote:
Originally Posted by dwarfofpoison
I fail to see how anybody feels that there is ever going to be any real competition for sports on TV.
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It's quite easy. Firstly, there is no true national competitor to the Sky platform in terms of a good range of entertainment channels and a good range of sports channels. If BT were able to sell the Sky Sports channels on YouView and provide more entertainment channels on YouView, it would offer genuine competition to Sky which would exert downward pressure on prices.
Secondly, most people buy the sports packages for one reason - the Premier League. If BT Sport and Sky Sports have similar ranges of Premier League matches in the future then BT Sport and Sky Sports become close substitutes and some people will chose the cheaper of the two providers, thus exerting downward pressure on prices.
It's all about close substitutes here, not identical substitutes.