The importance of competition

Thinking about the factors that make for a strong economy, top of the list is healthy competition. While consolidation drives up prices and waters down quality, competition stimulates innovation, improves product and reduces costs.

Netflix is set to acquire Warner Bros., including its film and TV studios, HBO Max and HBO. While the idea of having Harry Potter on the same streamer as Stranger Things might sound like fun, consumers will suffer in the long run.

With fewer options for independent creators to bring their ideas to, fewer voices will be heard and diversity will be reduced. And - as ever - with less competition, prices will rise. It’s bad news for artists and worse news for customers.

Many of the movies and shows on every other platform tell versions of our most beloved tale - the underdog overcoming the big guy. David vs Goliath stories have endured for millennia because we love seeing great competition, and we naturally root for the longshot. This remains true in business as in art.

We started Virgin Atlantic because I saw that consumers were getting ripped off by British Airways’ monopoly. Our competition brought innovations ranging from seatback video to premium economy to loose change charitable donations (my wife Joan's idea).

Virgin is now seeking to end the 30-year monopoly on the cross-Channel train route for the same reason – competition will drive innovation, which will benefit consumers.

In most sectors, if a customer isn’t happy with the service they get, they can choose to go elsewhere. This latest consolidation move makes their choices even fewer. It is among government’s most important roles to ensure fair competition across the board.

I always say you should take the competition seriously, but not yourself. For that to work, we all need competition.