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The idea on the table is basically an exclusive distribution deal. These deals have a long and profitable history. Points of access will often make a sweetheart
by GavinB 17y ago
The idea on the table is basically an exclusive distribution deal. These deals have a long and profitable history. Points of access will often make a sweetheart deal to have something special to differentiate themselves from otherwise interchangeable providers. It's why Howard Stern gets paid a premium to be exclusively on Sirius, and why certain smartphones are only on certain networks.
That's not to say this is a good idea for News Corp, but it's not a nonsensical idea.
- Kliment 17y agoThese deals tend to fall apart over time though, as the content quality differential fades. If you are the only channel (or network) offering a certain content (or device) then you win by keeping it as a bundle. But both content and mobile client devices change fairly rapidly. If others start producing content that is equally good or even slightly worse, but much easier to access (due to indexing, being free, being linked to), you lose from your bundling, and you start losing content as well. If other devices are equally good or better, you want to break bundling as much as possible so that your competitors get a smaller share of bundle revenues.