Sunday, 4 March 2007

A good example of the free market in action

Recently, NTL/Virgin Media have ceased showing Sky One on their digital networks. This has caused concern because Sky One show many flagship American shows like The Simpsons.

However Sky are offering their digital service at a lower price than NTL/Virgin Media. This is a perfect example of the free market in action. BSkyB have realised an opportunity here and are willing to capitalise from a competitor.

Imagine if ALL services could be subject to such forces. Prices would be lower, due to competition. The quality of goods and services would be higher, since companies would lose custom to competitors otherwise. With no government around, we could live in a world with higher quality goods and services.