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Old 17-07-2019, 10:24   #5668
jfman
Architect of Ideas
 
Join Date: Dec 2004
Posts: 11,146
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Re: Netflix/Streaming Services

Quote:
Originally Posted by Horizon View Post
That was my thinking, old boy, coupled with targeted ads where Amazon know what people like and then sell adverts (making money) to specific advertisers and then make more money by flogging whatever goods from their site and that's all assuming that Amazon didn't just charge a subscription rate similar to what Sky/VM/BT do now.

I don't see how a trillion dollar company with more data on people than anyone else, will struggle compared to an existing pay tv company such as Sky.

And don't forget all those overpriced football kits to be flogged by them too along with a multitude of other merchandising.

As I said, the sports pay tv market is already there, created by MUrdoch. The customer base is already there, most people already have smart tvs, firetv sticks etc to access Amazon's Prime app. It should be a "doddle" to convert those Sky/BT/Vm sports customers to themselves.

And yes, it does depend on how its packaged, which I think Amazon will need to undercut existing prices to encourage the wholesale move of sports customers to them.
Surely you've answered your own question. If Amazon already have so many customers, hold so much data, and have "trillions of dollars" why would they waste £5bn+ to then sell a product they don't want or need on their portfolio?

Old Boy says he spends £500 a year on Amazon, but what's the profit margin? Is he going to spend even more if they sold football at a loss out of kindness?

In reality there's diminishing returns from this where the set of rights they have will gain a lot of little outlay. Substantially more rights will cost more to achieve fewer core subscribers.

Then we come back to why England? Why not North America? Germany? Italy? Spain?
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