Quote:
Originally Posted by bubblegun
A cynical view you could take is that Sky have a customer base so large that it is beyond a "critical mass" that adding customers at any price is essentially "free" money. That's why they do some crazy deals currently. Enough of them stay when the discounts end to make it worthwhile.
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I don't think it's a cynical view, it's the reality of Sky's business model. In TV, costs are pretty fixed so that any sales once those fixed costs are covered are pure profit. Hence why Now TV is profitable.
For VM and BT, their fixed costs are its broadband infrastructure. Once these costs are covered, it's pretty much pure profit.
The piggy in the middle is TalkTalk. It pretty much buys in everything be it broadband or content. Hence it has been squeezed and has had to downsize some of its content.