cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
| Re: a la carte won't save most people any money said by G_Poobah  :Actually, your logic is so fatally flawed it's laughable. By YOUR definition, the content providers get the SAME AMOUNT MONEY no matter how many people subscribe? In what magical land (north korea) is that true? It's not really my logic. It's the FCC and content provider's logic. I'm not saying that they will get exactly the same amount no matter how many subscribe.
I think it would be safe to presume that under a la carte pricing, many channels would see a reduced number of subscribers. Just because the channel has fewer subscribers doesn't mean the operating expenses also decrease. They would stay more or less the same. However, since the channel will have fewer viewers, advertisers won't pay as much for fewer eyes watching. So the channel loses money in the process. That lost revenue has to come from somewhere, so they have to raise rates to create a balance.
ESPN charging $126 is absurd. Obvisouly they can't sustain a viable business charging those rates. If they were to do that they would price themselves out of business. But charging $15 I think is within the realm of a possibility.
With a la carte pricing, I will guarantee you that there will be fewer overall choices in channels because many of the small niche channels will essentially price themselves out of existence.
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"What gives them the right to come in and do this?" she said. - Lady complaining that she was getting FIOS in her backyard. |
