Thread: VOD Linear is old tech - on demand is the future
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Old 28-02-2019, 10:17   #642
OLD BOY
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Re: Linear is old tech - on demand is the future
Quote:
Originally Posted by denphone View Post
Strange how OB very much espouses free market economics and yet criticises Sky for making a reasonable profit and for setting their prices too high.
Not at all. I am simply saying that there are different approaches to pricing.

---------- Post added at 10:05 ---------- Previous post was at 10:05 ----------

Quote:
Originally Posted by pip08456 View Post
Another way of saying the maximum they can get away with.
Got it in one, pip. Sky has form.

---------- Post added at 10:07 ---------- Previous post was at 10:05 ----------

Quote:
Originally Posted by denphone View Post
Just like any other company then.
True, but that's where competition comes in and sooner or later, competition will bring those prices down.

---------- Post added at 10:17 ---------- Previous post was at 10:07 ----------

Quote:
Originally Posted by jfman View Post
Only if those customers are actually there. As has been pointed out Sky routinely charge £20 a month on Now TV for sports only, and heavily discount their premium product from time to time to attract new customers and retain existing customers on an ad hoc basis.

At £15 a month a service selling only Premiership football would need 8.3 million subscribers per month just to cover the costs of the rights. This ignores production costs, marketing costs and taxes. Are there enough people out there willing to pay this just for Premiership football and nothing else?

Does a £15 price point really introduce it to a significantly bigger market than £20 for an all round sports product?
That is a very inflexible approach. There are opportunities to provide 'skinny' bundles of selected matches over the year at a reduced price which would attract more customers, enable other TV channels to purchase non-exclusive rights to a limited number of selected games, etc. It is not just a stark case of 15 quid a month for 8.3 million subscribers. You haven't even added income from advertisements into that figure.

As far as Amazon is concerned, because Prime is linked to their retail operation, it is quite possible that they may be happy to simply break even if it brought in more customers for their central business.
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