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Originally Posted by 1andrew1
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Exactly my point.
Wholesaling while also retailing “direct to customer” eats into your potential revenue. Remembering that it’s all just television and streaming isn’t magically exempt from the economics of that market BT Sport is in Virgin Maxit as was ESPN before that and Setanta before it.
This benefits both parties - Virgin subscribers were less likely to take Sky Sports than Sky subscribers, therefore further less likely to take an additional sports service from another provider. Way back £2.50 per sub per month was getting quoted for Setanta as wholesale. Guaranteed income they relied upon.
However it worked because Virgin subscribers weren’t the target audience for Setanta direct to customer subs. Sky subscribers with Sky Sports were as they’d be significantly more likely to cough up £15 a month for dedicated sports channels than someone paying Virgin £40 a month for a tv/phone/broadband bundle.
For a general entertainment streamer they can’t wholesale to Sky or Virgin without cannibalising their own potential customer base.