Quote:
Originally Posted by LaLiga
Their business model is being a content aggregator meaning buy the rights and pimp them out to as many platforms as possible. Obviously their online offering alone they aren't going to come close to breaking even.
That said Virgin/Sky are content platform providers so they do need each other. What would be the point of providing a platform but not putting TV channels on it?
I assume we all have Virgin TV so why anybody wouldn't want Eleven escapes me.
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Well it’s not wise as a “content aggregator” to pay unrealistically high fees for content and turn to those you outbid (Sky, BT) to ask them to pick up the tab because you lack a direct to home business model.
I fail to see the value in Virgin subsidising a failing company, lacking a business model, for content that would have largely been on Virgin anyway had they not entered the market.
I’m also concerned that the commercial relationship between Virgin, Sky and BT (the latter also being mobile network who Virgin provide MVNO services through) could be jeapordised by doing so.
If the content is available for pennies per subscriber on a wholesale basis it might be worth Virgin doing a deal as it wouldn’t have a meaningful impact on prices. Even a £1 a month price increase would be too high for much of the subscriber base who have no interest in the content anyway.