The price bomb oozes politics – VG

It is interesting to record which line of communication TV 2 chose, since it was learned that the price of TV 2 Premium for Canal Digital customers increased 40% in the middle of a period of rights.

The channel talks a lot about how expensive soccer rights have become, but little about the underlying factors in a TV market with a fierce battle for customers.

But there are many reasons to assume that there are also many policies behind pricing.

Going forward, the football experience will cost Canal Digital customers 699 NOK per month, instead of the already stiff 499 NOK. It is stated that this is due to a surcharge in the terms and conditions of TV 2.

The price shock obviously generates both debate and reactions, but so far there is a lack of key information to be able to analyze the situation correctly.

A key question: how much of this boom is a real consequence of rights costs, and what is actually so much about TV 2’s positioning strategy?

We can only be wiser about this when the total price situation around Premier League access is available during the latter part of the entitlement period.

We know that the channel’s own product, TV 2 Sumo, will also increase in price. But a very important point, which has not been answered so far, is how large the margin will be here, compared to what is required from Canal Digital and other providers.

We will return to this dimension, but first a little about the big picture:

Of course, TV 2 is right that rights cost, so sing along later. No one should doubt that the channel has done its best to showcase the stars of Liverpool and Manchester City, as well as trying to generate excitement in Burnley and West Bromwich. So it’s in the cards that it will be costly for you and me to join in the fun.

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The business model that has created such a bloated football economy is based on the fact that each of us thinks the product is so good that our willingness to pay can spread and stretch. Because so many people in the world pocket money for pig farmer games, or pay the white of their eyes for an official football uniform for the podium, young men can raise millions each week. Nice? Not especially. But at the same time, an extreme consequence of the ability to reduce a demand to the extreme.

The question is where does the pain threshold go for the number of consumers that can be milked, and more than 8000 crowns a year will obviously cause some people to drop out of school. But seen through the eyes of TV 2, this may very well be perceived to answer the bill, even if the totals go awry. For the channel, it may be just as important to get a larger share of traditional providers and to enter into its own TV2 umbrella by choosing sumo, even if it costs the full. This can build loyalty, and in the modern media market it is economical to control your own customers rather than buy the product through others.

That is why it is so interesting to see if we can achieve a lasting gap between what the Premier League will cost via TV 2 Sumo and the same package via others. It will not be surprising if a clear plan emerges to gain better control over PL clients in the remaining time of the entitlement period. The optimal for TV 2 will then be if they have adopted habits that they want to maintain in other parts of the offer, at the same time that it will make the situation more demanding for the next licensee when the Premier League continues.

We live in an age where television habits are changing dramatically and the battle for customers and crowns is escalating. And while TV 2 is probably right that the last PL period has cost them dearly to insure, there is still much more than what has been reported that is behind the price shock that was unveiled this week.

But in any case, what happens is nitrite for the useful dairy cow. Namely, the fans.

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