Quote:
Originally Posted by OLD BOY
Sorry, jfman, I don't quite understand your argument. What are the 'barriers to entry' that you are talking about here? Do you mean the fact that some households cannot yet receive super-fast broadband? If so, that problem will be solved when the Government's programme is fulfilled.
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No, because that’s not within the control of a new entrant. What you are suggesting there is an insufficient market to sell into.
Barriers to entry would be anything that stops you, me or anyone else easily setting up a streaming service and makes it easier for Comcast or Disney to do it.
---------- Post added at 21:46 ---------- Previous post was at 21:16 ----------
Quote:
Originally Posted by Horizon
Which six, take your bets now.
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And importantly those six are unlikely to replicate the pricing strategies of companies that exist in perfectly competitive markets. Profits are maximised by allowing prices to creep up, as with a monopoly.
It’s nice that Netflix found people to borrow $20bn from to develop and grow their business, however it’s unrealisable for all but a small number of companies to do this.