 LinklistPremium
join:2002-03-03
Longport, NJ
kudos:5 | reply to Jason Levine
Re: Possible IP TV First Step said by Jason Levine:Of course, the reason they won't do this is because then the other cable companies will do the same and the competition would drive down prices. Can't have that, now can we? (Even if it winds up meaning more profits for the cable companies without rate increases.)
You are contradicting yourself. If competition is driving down prices, profits would go down and not up.
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A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury. |
| Prices going down doesn't always mean profits go down.
Let's assume that Time Warner Cable rolled out TWC TV to everyone in the US. Even if you aren't in a Time Warner Cable area (or have Time Warner Cable TV service), you could sign up for TWC TV. Suddenly, they have an influx of customers. Even if each customer was paying less (because we'll assume for the moment that TWC TV costs less than a cable subscription) the increased number of customers would add more money.
In addition, IP TV would require less infrastructure investment than cable TV. To run a Cable TV service, you need to maintain cable lines, phone support, service in people's homes, etc. To run an IP TV service, you need app support and servers to stream the channels. Cost of doing business would drop and profits would rise. (Yes, the Cable Internet side of things would still require money/investment, but that's separate from the Cable TV portion.)
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-Jason Levine |
