Quote:
Originally Posted by OLD BOY
That's not how increased competition works.
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In textbooks maybe.
However you’ve ignored the important qualifications to that economic theory. It assumes a large number of suppliers offering directly comparable products that substitute for each other.
It also assumes barriers to entry are low allowing suppliers to enter or exit the market easily.
The pay-tv market doesn’t work this way. Barriers to entry are high, even in streaming, which is why the current market can at best be described as oligopoly. The same applies to their upstream supliers: the Vauxhall Conference isn’t a comparable product to the Premiership. Last years cinema releases aren’t comparable with movies from the 90s.
Streaming won’t change that if it’s dominated by huge US media conglomerates plus Amazon and Netflix.