| Um...it's business? If I remember right, the companies get charged per subscriber for each channel. The way it was explained to me was "IF you take a sports channel, say it starts out at $1 a subscriber, then they sign a deal with a sports league to carry it on their channel, they don't pay for that with commercial money. That money comes from the revenue from cable and satellite companies. SO after the new sports contract, they up their rate to $3 a customer. Depending on where the channel falls (basic, or for cable companies expanded basic also) depends on which tier is going to see the hike. Multiply this scenario by the number of channels you subscribe to and there is 95% of your bill. |
mworks
join:2006-06-13
Faison, NC
1 edit | reply to MrChilly
If you have a channel that is popular , like USA, the cable companies have to buy not only USA, but also MSNBC, SCIFI, etc . Companies that have big name channels know that the cable companies subscribers will want them, so they require must carry of their other channels. If your package only has one of those channels and the company NBC raises the price on them , you pay for the other channels increase in price , even if you don't get to watch them.
So your tier may go up in price for channels you don't get to watch. The plus for the cable and sat companies is they can turn in lower customer numbers per channel and get the channels cheaper, even though we pay more. |
