Re: Why should cable/telco eat higher programming costs?
I think you missed the point. The lack of competition means they don't have to resist price increases, they can just roll them over to the consumer easily in lockstep with each other.
If the market was more competitive, and margins were thin, they'd basically have to fight content providers attempts to keep raising the price constantly. Basically, they would say "No." -- "Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
I think you missed the point. The lack of competition means they don't have to resist price increases, they can just roll them over to the consumer easily in lockstep with each other.
If the market was more competitive, and margins were thin, they'd basically have to fight content providers attempts to keep raising the price constantly. Basically, they would say "No."
Maybe I am still missing the point, but I think that's what I meant with the tit for tat statement. And so on.
When there is a monopoly, regulation is supposed to keep consumers from getting gouged. However, the "competitive providers" theory doesn't work very well in a network effect world. -- USNG: 16TDN2870 Find your Lat-Long: Geocoder
·
·
·