Sky‘s dominance over televised football was recently shattered by the entry of British Telecom into the market. On the face of it, this competition should be exactly what our country needs, to bring down the outrageous expense of TV, as a small but significant strike against our cost of living crisis. However, the market for football rights is dysfunctional, and Sky may already be trying to undermine competitive pressures [link]. That’s why Milibandism needs to be applied.
If BT and Sky were competing for customers on equal terms and with equal products, then prices would naturally fall. The problem is that they can’t have an equal product. One or other will have the football rights and the customers will go straight to that provider. Therefore, the two companies will compete ferociously to buy this content, pushing the price up to astonishing levels, and wiping out the advantage the consumer would have gained through their competition.
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