Competition

Was reading the papers this morning can came across this letter on the forum page.

The writer is obviously writing this letter from the perspective of the consumer, without looking at this matter from the other side.

Why should Singtel accept Starhub's offer? I believe that Singtel paid a lot to secure "exclusive broadcasting rights" to the EPL. Why should they accept Starhub's offer? It doesn't make any sense no matter which way I look at it. The amount that Singtel earns from each customer paying for the sporting plan is marginal; maybe even at a loss. My guess is that their profits come mainly from customers subscribing to other channels at the same time, as well as the main, primary package. This razor-and-blade kind of business model would only work, if consumers purchase more than the main package. With such a huge fee being paid by Singtel, its hard to see how they would be making a substantial profit solely through sporting channels.

It is also likely that hardcore EPL fans will switch service providers in order to carry on watching the sport that many hold dear. So why give up this potential goldmine? No reason whatsoever...

Utterly ricidulous in my opinion.