Quote:
Originally Posted by OLD BOY
I think you are missing something somewhere, jfman.
The fact that our fast broadband coverage has improved and continues to improve is adequate reason for the streamers to become interested.
Amazon decided to bid for the least attractive package to test the waters.
The returns on investment would be made the same way as Sky and BT are making them. They recoup the money from football subscriptions but also by drawing more people into the Prime service. Selling on selected matches to other channels will also add to the financial yield.
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On the contrary - you are missing something. If it's that easy - why didn't they do it in the first round of bidding?
Sky/BT are selling products alongside - basic TV packages, landline, broadband, mobile which are all revenue generators and must have products that ensures they retain a significant market share. Products that millions of households are paying for month in, month out. So it's far from clean cut that Amazon could do the same, indeed their own business strategists appear to have doubted it for 2019-22.
I'm not convinced the 5% of households who can't yet get superfast broadband will make any difference. Indeed - we don't know how many of these could get the baseline for Amazon video through ADSL2+ or 3/4G.