"All of Netflix revenues are absorbed by content costs and debt repayments and it has still to make a profit and likely never will."
Dallo, you just hit the nail on the head.
Netflix with a sky high PE, against ITV with a low PE......... I know which company I would rather have my hard earned invested in. With Britbox being written off before it's even started by the so called expert, Britbox has nothing to lose, and everything to gain. I'm quietly confident about our Britbox prospects.
"You are assuming that xxx million people would be prepared to pay for something that they have never had to pay for before?"
The same could be said before SKY came along with live football.
"Also from a BBC perspective, people would be prepared to pay over and above what they are currently paying via the TV licence?"
All subscription channels ie SKY have to purchase a TV license to view their subscription channel. Britbox at a price of only £1.50p per week I would think that a majority of soap fans would pay for it. I know that my wife would. I can hear the arguments now between couples, you have your football, and I'm having my soaps.
What was it that Carolyn McCall said shortly after being appointed the new ITV CEO, the time for something for nothing has gone.
Regarding Britbox, IMHO, I can see the BBC and ITV will move their soaps over to Britbox within the next 2 years. This will give a big boost to earnings going forward. With Coronation Street 7.5mln Emmerdale 6.5mln and Eastenders 5mln viewers.
TOTAL VIEWERS 19 MILLION. Yes it could be argued that a lot of the viewers will watch both BBC and ITV soaps.
So let's say only 50% of soap viewers take out a subscription...
Coronation St. 3.75mln Emmerdale 3.25mln Eastenders 2.5mln
TOTAL 9.5 MILLION SUBSCRIBERS...This is based only on 50% of soap fans subscribing, this IMHO would be a conservative estimate, paying £5.99 per month. You can very quickly see the appeal to Britbox going forward.