Quote:
Originally Posted by OLD BOY
Well, I am sure there will be a significant enough rise in basic Prime subscriptions to Amazon, but this on its own would not make this an attractive venture. However, add the additional charges to subscribers who took the additional football subscription, and I have no doubt that it would pay, just as it pays Sky and BT to offer the football.
I fail to see why some people seem to think that Amazon cannot make a success of it when Sky and BT can! A profit is a profit, after all.
|
Yet their own bean counters didn't bid a solitary dime in the first round of the last Premier League rights auction.
It's self-evident why it's harder for a new entrant. First they have to outbid the incumbents - therefore exceed the value that another organisation has placed on the rights. An existing organisation, with an established customer base, and a profitable business model on day 1. In the case of Sky one probably an organisation that places a price premium on these rights above all others as being essential to it's business model.
Amazon wouldn't be profitable on day 1. Not does it have a 12 months sports offering. So immediately it's losing money in year 1 it needs to get back by year 3. No guarantee of retaining rights after all. If it's that easy Netflix will have them, or Facebook.
So you ask yourself how to best use £5bn scratching a hole in your pocket. You look elsewhere.