|reply to IowaCowboy |
Re: Why should Netflix undercut cable
I think our opinion regarding Netflix differs though - I personally like Netflix (even though I'm not a subscriber anymore) because it's different. I could care less how much it costs - I like that there are options, that you can stream movies on demand, and no ads.
As far as that goes - Netflix is not a cable ISP. They entered this business to provide IPTV & frankly, they're doing a good job.
Also - It's pure greed IMO by the ISP. They made contracts with content providers - if everybody cuts cable, who's fault is that if they lose revenue? Not the consumer, that's the ISP. They then need to figure out a way to recover their subscribers. If they can't, they deserve to not be a provider any longer.
It is the content owner's fault more than the cable operator/ISP's. The content owners make the rules. Operators can't do anything about it. Cable operators would like for their rates not to go up as much as their consumers, but that's not an option when content owners want double and sometimes as much as 5 times what their previous contract required.
said by silbaco:
Cable operators would like for their rates not to go up as much as their consumers, but that's not an option when content owners want double and sometimes as much as 5 times what their previous contract required.
Cable operators certainly have an option in that case: stop carrying the content.
The only reason they don't opt for this is because they know they can push their increased costs onto the backs of their subscribers. It's less risky for them to pass on a cost plus make a little more profit under the guise of "Sorry, but we're held captive; what can we do?" than it is to take a stand and tell the content producers to go take a hike.