Fox will announce repackaging of Speed, Fuel
- Thread starter radiator65
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If Fox does this right, it will be good for everybody. ESPN needs some real competition to instill a little humility and keep 'em honest.
I see the competition working the other way. There will now be another cable sports conglomerate (not to mention one with a broadcast arm, ala ESPN and ABC) bidding on content. That is sure to drive content prices up, making it more expensive. Plus, we will now have 2 more channels demanding lowest tier placement.
It can drive the price of ESPN down, if it does become a suitable substitute. Problem is, they may both see it as not a piece of the pie, but a whole new pie....
How is it competition? Will we have a choice, Fox Sports 1 or ESPN? No, we will be forced to take both. That is not competition. The only way there would be competition is if both had rights to the same programming, and Dish got to choose who provided it. Yes, competition drives prices down, but only if they actually compete i.e. offer a similar product that can be purchased from two or more sources that have to compete for business.
What I describe is another economic principle: supply and demand. Another sports network will mean more demand for the limited supply of sports programming, especially the valuable ones like the NFL, NBA, MLB, NCAA, NHL, Olympics, NASCAR, FIFA, and so on.
So let's say MNF rights come back up, and ESPN and Fox get into a bidding war, pushing the price up 50% or more. It's not like the loser can just put on the CFL. No, the winner will raise it's prices more than it would on its own. I see it no other way that this could cause prices to go down.
not when broadcasting rights simply go to the highest bidder. More channels means higher bids.
I believe the new Big East basketball conference will be Fox Sports One's first big signing.
