Except it’s not how it started…
The good results of the last five years are the result of the increased investment in the PL, not the other way around... In 2010/2013 the tv rights of the PL were worth (2,5B domestic and 2,2Bs international)… In January 2016 these figures had jumped to 6,6B and 5,1B… About 60% increase. Only justified by what I explained earlier: A strong desire from those investors (Abu Dhabi, Murdoch..) to make the PL a super league… And it is working.
Between 2013 and 2016, the period that saw the biggest TV rights increase (+60%), English club were pretty poor in Europe… City won the league but was more likely to exit in group stage than get far and the UEFA coefficient showed it clearly. The EPL was far behind the Spanish league in that period. And not much better than Serie A/BL. The main reason Rodgers’ Pool could fight for it in and Ranieri’s Leicester could win the PL in 2016 was the pretty average level of the league back then (plus the absence of a Juve/PSG/Bayern— I believe Atletico might have won that PL 4 times in a row if they’d played in it...).
It will not stop the PL domination over other domestic leagues, but it will reduce the financial gap significantly... And that's all they can hope for...
The PL made some very smart moves in the last 20 years. It attracted investors from all around the world, ( I think Abramovich was the main turning point), but it also built some strategic business alliances with massive groups, including media outlets. These groups are so invested in the PL that they will do anything to promote it. Murdoch, Abu Dhabi, NENT (MTG in the past) are some very powerful allies to have. Each played a massive role at some points.
I live in Sweden and I have seen over the last 6/7 years how Viasat went from first abandoning most European leagues to now abandoning the CL and focusing on promoting English football in ridiculous proportions, the Swedish kids will know West Ham and Leicester more than our own clubs and definitely more than Bayern and Juventus.
There are huge financial interests around the world invested in the PL that its promotion is vital to them. And if this continues the PL will become the de facto Superleague, no doubt about it.
It is not supply and demand. It is supply deciding what the demand is. Viasat (the owner NENT) is losing money on the short term because they invested insane money on the PL. There is no way that 6 year deal is profitable for them on the short term. But it might become profitable in 3/4 years if the PL reaches the status we are expecting it to reach in Sweden. And there are many initiatives around the PL, including fantasy games FPL and FIFA EA Sports, contributing to the promotion of the PL. So it is not a stupid bet.
When Mansour bought City, the Abu Dhabi sports group bought PL tv rights for the middle east -knowing they were losing money- and they drove the prices up, they kept driving them up and BeIN had to buy them at a much higher price the next time.