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By Richard Branson
Published: October 22 2009 20:47 | Last updated: October 22 2009 20:47
It may be hard to imagine now, but in 1990 the only UK airline that was allowed to fly between Heathrow airport and the US was British Airways. Back then, BA had a monopoly on this premium route and it guarded this privilege jealously. It wasn't until the Conservative government dismantled the barriers to competition and loosened BA's grip on transatlantic landing slots that Heathrow was opened up to Virgin Atlantic. The benefits quickly flowed through to the consumer: prices fell, there was suddenly more choice and, as a result, airlines had to innovate to provide new, more attractive services. This is how competition works and at Virgin we think it's a good thing.
The pay-TV market today is reminiscent of the airline market in 1990. There's a dominant incumbent with an iron grip on the supply of key content that uses all its muscle to prevent competitors coming into the market. Just as then, intervention is needed to allow consumers to experience more choice, lower prices and greater innovation. This time though the company jealously guarding its position is not BA but BSkyB.
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