Wednesday, 13 November 2013
The power of OPM
Of course, the real truth is worse still. It is not just the energy companies that various Government's have hit with this wheeze;
- Rail subsidies have been cut, still these are at least subsidies, but by reducing them steadily the Government has instead allowed RPI+1% as minimum increases in rail fares, pushing rail travel to become more expensive than air travel domestically.
- With the introduction and increase of the air passenger tax, air travel too has been made more expensive and the collection of this tax falls on the airlines. So in particular, former national industries are often hit, no doubt the socialists enmity to progress focus' them on such business.
However, it is not just the Government who like the spending on your behalf. Just this week we have seen a private sector case, which will be of little interest tot he high minded, but does get to me! BT Sports have massively outbid Sky for the rights to Champions League Football from 2015 onwards. This huge bid has been portrayed as the first real challenge to Sky since ITV's ill fated ITV Digital initiative. Sky suffered a 10% loss of share price on the back to the loss.
Worse though for punters, is that BT Sport will only offer one match per season per team free to air. So now there will be even less 'free' football on TV. Now of course this is BT's commercial right to try and compete with SKY. However, the massive over-bidding for rights, will mean more costs to watch the sport. Let alone having to potentially buy Sky and BT Services, the actual prices for the sports packages will go up.
Of course, this is a commercial decision that is up to BT, if they don't get the subscribers they will give up. But what it does mean is for 3 years there will be very little free to air champions league and then after that Sky, should BT fail, will be in a better position to not revert to offering more for terrestrial opportunities.
But then again, those football clubs, just like the Government, really do need those extra revenues. At least I can opt out of watching football, it will be harder to live without power.