02-06-2024, 04:47 PM
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Outside Topic Disney, Fox, others teaming up to offer streaming sports.
Outside Topic Disney, Fox, others teaming up to offer streaming sports.
02-06-2024, 06:24 PM
Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
02-07-2024, 09:43 AM
(02-06-2024, 06:24 PM)BostonCard Wrote:Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
Good points. Also good economics.
(02-06-2024, 06:24 PM)BostonCard Wrote:Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
Good points. Also good economics.
02-07-2024, 06:27 PM
(02-07-2024, 09:43 AM)TonyLima Wrote:(02-06-2024, 06:24 PM)BostonCard Wrote:Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
Good points. Also good economics.
As long as they continue to offer the same product through cable separately and cable remains significant, they can point to this as an additional distribution option, not a replacement. They say they are offering this as a service for people who have cut the cord. When you sign up for cable, you ususally don't have an option of selecting ESPN or FOX for sports; you ususally get a combination of both, similar to this streaming service.
(02-07-2024, 09:43 AM)TonyLima Wrote:(02-06-2024, 06:24 PM)BostonCard Wrote:Quote:Citi analysts expect the new service to encompass about 55% of U.S. sports rights, according to a note published Tuesday.
Seems like this should receive a fair bit of anti-trust scrutiny, both because of its potential monopoly power (my only choice for watching most college football, which is broadcast by ESPN and Fox might be this new service) and monopsony power (you may no longer have competing bids between Fox and ESPN/ABC for broadcast rights). Seems like an anti-competitive nightmare.
BC
Good points. Also good economics.
As long as they continue to offer the same product through cable separately and cable remains significant, they can point to this as an additional distribution option, not a replacement. They say they are offering this as a service for people who have cut the cord. When you sign up for cable, you ususally don't have an option of selecting ESPN or FOX for sports; you ususally get a combination of both, similar to this streaming service.
02-07-2024, 06:58 PM
Some more economics. Cable tv relies on a "pure bundling" model: either you buy the whole package or you buy nothing. They did not have to do this. But unbundling would mean those who only wanted sports content would pay a higher price. If you only want the USA, Discovery, and Comedy Central, you should pay nothing. (Actually, given marginal benefits, the cable company should pay you to watch those, but that's a different debate).
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
Some more economics. Cable tv relies on a "pure bundling" model: either you buy the whole package or you buy nothing. They did not have to do this. But unbundling would mean those who only wanted sports content would pay a higher price. If you only want the USA, Discovery, and Comedy Central, you should pay nothing. (Actually, given marginal benefits, the cable company should pay you to watch those, but that's a different debate).
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
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