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| Monopoly-like prices? You don't say!
Professor Claes Fornell gave the commentary, and he actually did say monopoly-like prices. Looks like subscriber satisfaction doesn't matter much to the customers (shareholders).
said by Professor Claes Fornell :
...
There seems to be an element of monopoly-like pricing in the cable industry: basic cable services rose 5 percent in 2006 and 93 percent over the past decade, nearly four times the rate of overall consumer prices during the period. Such pricing power usually comes with some level of monopoly protection and most cable companies have little competition at the local level. This also means that a cable company can do well financially even though its customers are not particularly satisfied. Comcast is one of the lowest scoring companies in ACSI. As its customer satisfaction eroded by 7% over the past year, revenue increased by 12%. Net income went up by 175% and Comcast's stock price climbed nearly 50%. In the first quarter this year, Comcast added 75,000 new cable TV subscribers, a 49% increase, and posted an 80% rise in earnings over the previous first quarter.
... »www.theacsi.org/index.php?option···emid=168
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