[chrisk]

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.

[chrisk]

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.