Quote:
Originally Posted by OLD BOY
What do you mean by 'economies of scale' in this context? Surely, the economies of scale lie in the global reach of the streamers?
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No, economies of scale come from being able to take a fixed cost (like say, £5bn for Premiership football rights) and dilute it across a massive customer base (like 11 million customers in the UK and Ireland), paying a large amount of money (I’ve not seen Sky’s ARPU of late, but I’d guess £500+).
No “streamer” is at that scale in this, or any other, market. For the hypothetical streamer the cost of the rights isn’t fixed, it’s inherently variable as they’d need to buy up the rights in each additional territory with a customer base with ever diminishing interest.