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RayW
Premium
join:2001-09-01
Layton, UT
kudos:1

That is not what was said last year

Did not the providers blame the higher rates on what they have to pay for certain mandatory channels like sports?
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I am not lost, I find myself every time.

CableTool
Poorly Representing MYSELF.
Premium
join:2004-11-12

Re: That is not what was said last year

The providers arent saying this.. the FCC is. And whats funny is if they believe this they are basically saying "YOUVE BEEN SCREWED BY YOUR LOCAL GOVT FOR YEARS!! And now we know why!"

Theyve spent so much time and implemented so many restrictions to make sure there was not a monopoly.. and now they are saying all their efforts CREATED a monopoly. Which is convenient after all the CableCos jumped through all their freaking hoops to obtain local agreements..
Ridiculous.
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CableFAQ.org/Technicians Unplugged
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: That is not what was said last year

said by CableTool:

The providers arent saying this.. the FCC is. And whats funny is if they believe this they are basically saying "YOUVE BEEN SCREWED BY YOUR LOCAL GOVT FOR YEARS!! And now we know why!"

Theyve spent so much time and implemented so many restrictions to make sure there was not a monopoly.. and now they are saying all their efforts CREATED a monopoly. Which is convenient after all the CableCos jumped through all their freaking hoops to obtain local agreements..
Ridiculous.
Not so in some cases.

In Baltimore City, United Cable signed a franchise agreement to be the sole provider. Under the agreement, they would be the only cable provider BUT they had to service 100% of the city. Is that a bad thing?

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD

Re: That is not what was said last year

It wouldn't be a bad thing if there were price controls in place. Staggering price increases (coupled with piss-poor service) can only survive when there is no competition and no regulation.

RayW
Premium
join:2001-09-01
Layton, UT
kudos:1
Oh, so the people who said the rates had to rise on most people's cable due to sports networks raising their rates was the FCC? Odd, I thought it was the cable companies.

And as I recall that rate increase set off a big hubba-baloo over the so called ala-carte system vice the pay for a bundle system.
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I am not lost, I find myself every time.
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
said by RayW:

Did not the providers blame the higher rates on what they have to pay for certain mandatory channels like sports?
ESPN is part of it, its something like 4 dollars per subscriber to the cable system maybe more nowdays. and a cable company cant decide to say make ESPN optional because in the contract with disney i think ESPN has to be on everyone's TV for the cable co to have any other disney owned channels.
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[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
Ahrenl

join:2004-10-26
North Andover, MA

Re: That is not what was said last year

ESPN is so expensive because ESPN gets the highest Neilsen 18-28 male viewership; which represents a large bulk (Gross $ wise) of the consuming public. Hence ESPN knows they can charge what they want, because they serve what people that spend money want. A la carte would "fix" that, but large corporate oligopolies have no interest in reducing prices because they make a return on total revenue (see Exxon/Mobil) so the larger the revenue, the larger, in real $ terms, the return. (although it's the same %).

So numerically:

Assuming a 20% profit margin:
Rev = $1 billion NI = $200 million
Rev = $10 billion NI = $2 billion

That's $1.8 billion more dollars available to pay your CEO. What would you do being CEO?

RayW
Premium
join:2001-09-01
Layton, UT
kudos:1
said by Kearnstd:

and a cable company cant decide to say make ESPN optional because in the contract with disney i think ESPN has to be on everyone's TV for the cable co to have any other disney owned channels.
Did not know ESPN was tied to Disney. Oh well, shows how much I watch TV.
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I am not lost, I find myself every time.