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jmn1207
Premium
join:2000-07-19
Ashburn, VA

$$ Make 'em Pay $$

I guess the intricacies of the contracts are lost to me, but it seems that if this channel is so valuable, it should be priced accordingly. Why can't Cablevision simply find a price point for this channel that would greatly improve their own business while significantly damaging the overall business of any competitor wishing to pay for it?

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: $$ Make 'em Pay $$

It's not about money.

If you're a nets fan, the only place you can view the nets in HD is on cable. That is a big seller for cablevision and I know quite a few people who have not drunk the FiOS kool-aid because they'd lose access to their favorite teams.

jmn1207
Premium
join:2000-07-19
Ashburn, VA

Re: $$ Make 'em Pay $$

said by fifty nine:

It's not about money.

If you're a nets fan, the only place you can view the nets in HD is on cable. That is a big seller for cablevision and I know quite a few people who have not drunk the FiOS kool-aid because they'd lose access to their favorite teams.
My point was that it could be priced so high as to have the same effect as completely blocking it from their competitors. I see more benefits from going this route than simply excluding it from competitors, especially from a marketing standpoint. "We offered, they declined. Complain to Verizon about it, we did our part." It doesn't have to be completely truthful, but advertising and marketing rarely shines in this regard.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: $$ Make 'em Pay $$

The problem with pricing it competitively high is that Verizon may actually pay the price for it and eat the cost while they drive cablevision out of business and take all their subscribers.

And when Cablevision is hurting for subscribers, Verizon will then negotiate the price down.

So in order not to take chances, they are simply withholding the channel. They give them the SD version so as to satisfy the FCC, but the HD version is Cablevision exclusive.

RARPSL

join:1999-12-08
Suffern, NY
said by jmn1207:

said by fifty nine:

It's not about money.

If you're a nets fan, the only place you can view the nets in HD is on cable. That is a big seller for cablevision and I know quite a few people who have not drunk the FiOS kool-aid because they'd lose access to their favorite teams.
My point was that it could be priced so high as to have the same effect as completely blocking it from their competitors. I see more benefits from going this route than simply excluding it from competitors, especially from a marketing standpoint. "We offered, they declined. Complain to Verizon about it, we did our part." It doesn't have to be completely truthful, but advertising and marketing rarely shines in this regard.
This type of pricing is what kept YES (the NY Yankees) Network off Cablevision for a year or two after it was launched. YES wanted too much money from Cablevision (and I think not being placed in Tier where the customer only paid if they wanted to have the channel as opposed to being charged for it even if they did not want it).
Skippy25

join:2000-09-13
Hazelwood, MO
And your example is why the broadcaster and the transport should be 100% separated.
MisterBill
Verizon FiOS

join:2002-06-05
Yorktown Heights, NY
said by fifty nine:

If you're a nets fan, the only place you can view the nets in HD is on cable.
Presumably you mean Knicks (and Rangers) since the Nets are on YES, which FiOS has in HD.

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