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 jmn1207Premium
join:2000-07-19
Ashburn, VA | Show Me the Money! I'd like to see data showing how the money is changing in all parties.
Is AT&T making a bigger profit, are they staying level, or are they actually losing money and simply attempting to reduce their losses?
Are the content providers just being greedy and trying to make a few extra dollars? Are advertisers not paying as much to the content providers because they are losing money? In turn, are content providers trying to stay level or are they, too, losing money and simply trying to minimize their losses?
Is it the talent (actors/writers) that is increasing their profits, causing a similar reaction from the content providers?
I don't need specifics, just averages, and I would be able to tell which party was making an increase or decrease by percentage. Who is losing money and who is making money? Do we blame Tom Cruise and the writers for Saturday Night Live? Is it Disney or some other media giant behind these price increases? Is this just AT&T raising prices to cover the cost of improving the services and infrastructure?
Since everyone always seems to blame the other guy, I suspect that everyone is taking a piece of the pie, except the customer. Regardless if the increases are used to generate pure profits, to keep an even keel, or to soften the blow from an economic downturn, everyone is making more money except the customer. | |
 jsz0Premium
join:2008-01-23
Jewett City, CT | It's a lot of things...
The cost of producing programming is going up
TV advertising is on a decline (local & national)
Viewership is down in favor of Internet, video games, DVD
So the programmers are increasing rates across the board.
They're losing landline customers hand over fist
They're losing highly profitable business data circuits (leased lines, frame relay, T1, ISDN, etc)
They're losing out to cable for consumer broadband
They're spending a ton of money to deploy U-Verse service
I'm actually surprised the rate hikes aren't higher. | |
| reply to jmn1207
said by jmn1207:I'd like to see data showing how the money is changing in all parties. You are making things far too complicated. Entertainment pricing at the consumer level is primarily discretionary, it is not based on cost.
As long as the cable/telco/sat companies have data to show that they will make more money by raising prices (and they do), they will raise prices. The content providers know that, so they in turn want their slice to increase as well.
Here's an easy example: If ESPN lowered their monthly per subscriber fee from $3/month to $1/month, would you see any reduction in your monthly cable bill? Your cable company would just point to any one of a million other reasons for keeping rates as they are or raising them again.
The only way to stop rate increases is to change the game. Netflix,OTA, etc... | | |
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