Re: R18 on TV - new Ofcom code is out
Posted: Thu May 26, 2005 6:02 pm
One of - if not THE - biggest concerns of all successful, established businesses is that of risk. Four letter word which strikes to the very heart of all strategic decisions that organisations take. And by risk I don't mean external events such as terrorism etc, but business risk.
I have no financial accounts to hand, but it seems there is a general consensus that Sky softcore channels are raking it in.
Would it therefore not be rational for these companies to minimise risk and not take any course of action which would endanger such a lucrative position? Why would Mr D at the Fantasy Channel (a political donor, don't forget) wish to change his market-dominating position and open up the flood gates to new, potentially more powerful competitors? Such a drastic market realignment (eg R18 on Sky) has the power to upset even those with a dominant stronghold. Why risk losing all that for the sake of a few million or whatever on top of that huge pile in the corner that exists already!?!?
Lets face it, if R18 were permitted on Sky, the Euro Channels would face very little barriers to entering the UK market. I presume (from my technologically-ignorant standpoint) a few contracts here, bit of advertising there, a few alignments of satellites and that's about it. Basically, they could do what they currently do in Europe with their existing infrastructure, but just widen the footprint a bit.
Now consider this - why the hell would the current UK big boys want that on their turf? This would endanger their market share and in all/almost all cases they would doubtless loose ground. The status quo is suiting them fine - as long as people continue to part with their hard (or otherwise) earned cash.
The more attractive the market, the more people are attracted to it. The higher the level of competition, the more the current big players have got to loose (the only way is down). Without a "free" market (ie including the right to show R18 on Sky), these potential competitors (eg from Europe) want nothing to do with the UK market.
And that surely suits the existing softcore peddlers down to the ground, does it not? Should we be so surprised at the apparent apathy to R18 on their part?
alicia_fan_uk
I have no financial accounts to hand, but it seems there is a general consensus that Sky softcore channels are raking it in.
Would it therefore not be rational for these companies to minimise risk and not take any course of action which would endanger such a lucrative position? Why would Mr D at the Fantasy Channel (a political donor, don't forget) wish to change his market-dominating position and open up the flood gates to new, potentially more powerful competitors? Such a drastic market realignment (eg R18 on Sky) has the power to upset even those with a dominant stronghold. Why risk losing all that for the sake of a few million or whatever on top of that huge pile in the corner that exists already!?!?
Lets face it, if R18 were permitted on Sky, the Euro Channels would face very little barriers to entering the UK market. I presume (from my technologically-ignorant standpoint) a few contracts here, bit of advertising there, a few alignments of satellites and that's about it. Basically, they could do what they currently do in Europe with their existing infrastructure, but just widen the footprint a bit.
Now consider this - why the hell would the current UK big boys want that on their turf? This would endanger their market share and in all/almost all cases they would doubtless loose ground. The status quo is suiting them fine - as long as people continue to part with their hard (or otherwise) earned cash.
The more attractive the market, the more people are attracted to it. The higher the level of competition, the more the current big players have got to loose (the only way is down). Without a "free" market (ie including the right to show R18 on Sky), these potential competitors (eg from Europe) want nothing to do with the UK market.
And that surely suits the existing softcore peddlers down to the ground, does it not? Should we be so surprised at the apparent apathy to R18 on their part?
alicia_fan_uk