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pende_tim
Premium Member
join:2004-01-04
Selbyville, DE

pende_tim to SpottedCat

Premium Member

to SpottedCat

Re: I don't get it.

There is one reason that I can think of: Networks are double dipping. They take the advertising money and also sell the feed to the cable companies.

Advertising revenue should not change with AERO as the same number of "eyes" will be viewing the broadcasts, [possibly more if AREO is wildly successful].

The other half of the income stream however will decline as the cable retransmission rights become less valuable when customers get alternate paths to access the networks.
travelguy
join:1999-09-03
Bismarck, ND
Asus RT-AC68
Ubiquiti NSM5

travelguy

Member

said by pende_tim:

There is one reason that I can think of: Networks are double dipping. They take the advertising money and also sell the feed to the cable companies.

Absolutely. All the MBA suits that run companies these days are taught to price based on value, not cost. They see value delivering eyeballs to advertisers? Charge them. They see value to viewers for providing entertainment? Charge them (well, the cablecos, but same thing).