Arie Dekker right on a number of items he raised...but, as usual, uktimately misses the point.
If Spark Sport exited the market it would be a boon for Sky. No ifs or buts.
These analysts are always quick to add the 'but' when it comes to Sky. "Yeah, it would be good for Sky if SS folded BUT...Amazon or some other big boy could enter the market".
Sure they could do that. They have virtualy unlimited cash...but why haven't they done it yet then? Even if Spark and Sky joined forces for a bid...someone like Amazon could outbid them without flinching if they wanted to.
The fact is, in a tiny market like NZ...a natural monopoly will inevitably form. The pond just isn't big enough to have two (or more) Mako Sharks in it.
If Spark Sport couldn't earn a living streaming live sport in NZ - what hope would there be of anyone else doing so?
Sky is only able to do so because of the bundle. They subsidise their Sport offering with their entertainment options.
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