The EU in favour of a free market shock

If this decision, to deny SKY the right to stop pubs using foreign decoders is held up then it is quite momentous. I have to say I kind of agree with the Premier League that this sort of decision should really be taken by the European Parliament; but nonetheless it is a potential big step forward for the free market.

If we have to have the European Union then it s a good idea to have as free a market as is possible in order to generate the maximum wealth benefits.

When the case comes up again I still think it will get struck down, but if it does not then it will more more than just the lawyers who are happy (though they will be ecstatic of course).

The Media vs Sky, part 2

The media giants of the UK, with the notable exception of Virgin Media have whined to Vince Cable today about News Corp buying Sky. Below are a quick sample of key numbers. As a quick glance shows, DMGT apart none of the other businesses are doing very well at all. Even ignoring the huge costs of the BBC and Channel 4, SKY is happily raking in far more in profits and growing its business.

No wonder the competition hate it, its business model has been well executed and is working well. New platforms like HD TV both delivered on time and prove to add customers and revenues in quick order. Meanwhile newspapers try to move online and cannibalise their own revenues. Even News Corporation is struggling with its own traditional media business model.

There is no reason for Vince Cable to block News Corporation's bid for SKY - it is already the effective owner as established by the ITV competition inquiry.

Profits and Customers of 2010 major UK players:

SKY - £1.17 billion, increasing customers 3%
News Corp UK - £27.7 million,  customer numbers 4% falling

Telegraph - £53.1 million, 5% fall in customers
BBC -  it costs £3,450 million odd in tax, Falling market share of TV
DMGT (Daily Mail) £240 million, Customers increasing by 4%
BT - £1,000 million operating cash flow for BT Retail (the bti that competes with SKY), no profit breakdown reported for this unit.
Northcliffe - £0 (part of DMGT)
Channel 4 - £3.9 million - Falling market share of TV and gets subsidy out of the TV tax.
Trinity Mirror - £72.2 million, 11.8% fall in customers
Guardian Media - £171 million loss, 10% fall in customers

However, I bet our nice shiny new Business Secretary can't see the commercial reality and goes for a nice political punishment for SKY to sate his moronic Lib Dem activist base.