Quote:
Originally Posted by jfman
They may well have misunderstood the economic theory of economies of scale and (falsely) believed there were massive savings to be had. The reality is Sky (and Virgin) were paying third parties pennies per subscriber per month.
And miss out on a ton of content elsewhere!
At least you are conceding this one as it's so egregious sports fans are having to pay hand over fist to multiple content providers. The reality is it's the same in general entertainment - just not quite as bad.
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Agreed.
As an example, someone pays 10p a channel per week for 10 channels=£1.
They only watch 5 of them, so think great, I can now get away with only paying 50p. BUT lots of other people stopped paying for the channels that they watch, so the price goes up to 20p a week to cover the shortfall. So now they pay 5x0.20=£1.
They end up paying the same for less channel choice.