Has Competition in the Market for Subscription Sports Broadcasting Benefited Consumers? The Case of the English Premier League

Abstract

This paper investigates the peculiar nature of competition in the broadcasting market for live English Premier League matches in the United Kingdom. Following the movement from free-to-air to subscription television in 1992, British Sky Broadcasting secured a monopoly on live broadcasting rights. The exclusive arrangements were later found to be in breach of European competition law and resulted in competition from the start of the 2007-2008 season. However, competition has not reduced prices charged to consumers. Both the overall cost to consumers and the price per game are higher with competing broadcasters than under a monopoly.