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Cablecos Are Killing Niche Channels, Yet You're Paying The Same
A growing number of cable providers are killing off lesser known channels -- yet you're still paying more and more money every month to your cable provider. The Wall Street Journal has an interesting report on how small, niche cable channels are slowly but surely dying, as pay TV providers trim the lesser-watched channels to save money wherever possible. The Journal's staff analyzed data on more than 100 TV channels, and found that many of these channels still cost you significant money, despite the fact you're not watching them:
quote:
Nearly 70 channels that collect an average of $13 of Americans’ monthly cable bills each accounted for about 0.5% or less of total TV viewing in January, according to a WSJ analysis of Nielsen and Kagan data.
Around nine companies own the lion's share of channels in your cable lineup, and most are painfully aware that consumers are growing increasingly annoyed at high prices and bloated bundles. Yet the Journal is quick to note that despite the consumer demand for more flexible channel skinny bundles and a la carte TV, cable bundles for years just got fatter as companies refused to compromise or lose money:
quote:
Since 2008, the average number of channels in U.S. cable bundles has grown from 129 to 199. But people typically watch only about 15 a week, according to Nielsen.
You'll recall that one of the industry's argument against a la carte TV channels (where you pick and choose just the channels you want) was that it would kill off niche channels. That appears to be happening anyway, and lucky you -- you're now losing this content yet still paying more for cable TV than ever before.

Most recommended from 27 comments


elefante72
join:2010-12-03
East Amherst, NY

17 recommendations

elefante72

Member

Not surprising

If you take the broadcast channels and RSN they are MORE than offsetting the .10c channels that nobody watches.

In fact most people don't know the #1 escalating cost is mandatory retrans broadcast "aka free" channels. CBS, NBC, FOX, ABC .....

I won't even get into ESPN...

Also it is no surprise that a handful of companies own, so they control rates. If you take Comcast and AT&T they will own a number of these networks, so they will just turn around and write themselves a check!

Only in America can collusion and vertical monopolies be legal!

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

12 recommendations

maartena

Premium Member

Sports addiction....

Unless you have some sort of sports addiction, and cannot live without it, there is no reason to pay for cable anymore. So what if you have to wait a year for the next season of your favorite series, its not like we come to work and we discuss in detail what was on TV last night..... everyone already watches on delay, whether it be because you set a DVR to record it for later, or whether you log on to Huly anyways to watch it because you forgot to record it.

I calculated my savings since I killed DirecTV in 2014 to be around $3300 so far. Guess what, I re-purposed some of that money and bought a new 4k 60" TV and soundbar/surround system last year, and spent about $1600 in total. I now can watch content in 4k, and even 1080p content from Netflix and Amazon is better than what is shown on TV. So I still saved over $1700 in those 3 years and got a much better TV.

But sure, keep on bending over each year..... and just a little more each February when the price increases come through to protect your precious sports. I'm actually curious, a question to die hard sports fans: Does a number exist at what point it becomes too much too pay? Is it $200 a month? $400? At what point do you, as a major sports watcher, say..... NOW it is enough. I'll listen to the game on the radio from now on. Does such a number exist, or can cable companies just keep increasing and anything they say, you will pay? (Or, will you go down from 2 to 1 car, or move to cheaper rent, or take some other measure to save costs to keep sports? - what IS it worth to you?)
tmc8080
join:2004-04-24
Brooklyn, NY

11 recommendations

tmc8080

Member

last ones paying $$$

be sure to turn out the lights of the dying industry when it finally dies, will you?

yolo2die
join:2001-04-21
Saint Cloud, MN

7 recommendations

yolo2die

Member

even Comcast fits this

Comcast is always cutting channels or shifting channels to the premium tiers, yet rates stay the same. Honestly looking at going back to internet only but you pay a premium for that also.
existenz
join:2014-02-12

5 recommendations

existenz

Member

"Yet you're paying the same..."

...or more.

CaptainRR
Premium Member
join:2006-04-21
Blue Rock, OH

5 recommendations

CaptainRR

Premium Member

I killed everything last year

I shut down my DirectTV last year after 15 years of being with them. Just got sick and tired of rate hikes and channels I liked most never upgraded to HD. So no more and all OTA and never look back.
JJV
Premium Member
join:2001-04-25
Seattle, WA

2 recommendations

JJV

Premium Member

Summers coming

Summers coming its time to cut the cord!

cline3621
Mr. Yuk is MEAN Mr. Yuk is GREEN
Premium Member
join:2006-06-14
Clarksville, TN

2 recommendations

cline3621

Premium Member

Pay-TV Pricing and the future of the business

"...and lucky you -- you're now losing this content yet still paying more for cable TV than ever before."

Not me. Ha ha!

In the eternal words of Homer Simpson: "Nothing a month? Yeah, I think we can swing that." Quote is from one of my favorite Simpsons episodes, entitled: "Homer vs. Lisa and the 8th Commandment"

However I'm not stealing cable, although I could easily, as I have a key to the interface box on the side of the apartment building. However, I have to ask. How do you steal something that is mostly garbage? Quality of the majority of content, in my opinion, has been going downhill for some time now. Length of commercials per hour of TV has been steadily increasing. Between quality and cost, I would like to think, many people are approaching the point of not seeing value in what they pay for TV service. I cut the cord mid 2011 and haven't looked back. I decided to put an antenna on the roof of the apartment building I live in, and use a secondary computer to record the 2 shows I do care about.

The current pay-TV model is a dead man walking. I would go as far to say within 10 years, (if not sooner) the business model of paying for a group of channels will be dead and gone. Unfortunately the owners of pay-TV services, cable networks, and OTA stations to a lesser extent, are either oblivious, or naive to this fact. Either that, or they are going to try to prop up a 1980's-90's business model that people are already tired of, and have started to reject outright. (Cord Cutting) The music business tried tried to prop up their (at the time) failing business model circa 1999-2000. It took them nearly 20 years to start to warm to technology as a distribution method, however the damage has been done to the major labels. This is one of the reasons piracy is so alluring. No cost. No BS. Get what you want, pretty much when you want.

I remember talking about this while on a conference call with higher management, when I was employed with Dish Network in 2010. At that point, I had been an employee for 7 years. Making these comments about pay-TV in general landed me in serious hot water with the company. For whatever reason, management was not too thrilled that I was speaking about how their business is going to end. We have to face facts however. The internet in general, as content delivery, is going to decimate the pay-TV industry business, whether it is cable, or satellite, as we know it now. It has already started. It's been this way for a couple years now. Its just a matter of time. As internet access, and technology improves, the rate of cord cutting will accelerate exponentially. Case in point: 15-17 years ago, up to as recently as 10 years ago, most of us still had a landline phone, paid for a long distance carrier, and on occasion, made 'collect' long distance phone calls. Hell, I feel old just typing that out. Can you remember the last time you made a 'collect' or long distance call? Technology has pretty much killed the landline phone business. Currently in 2017, according to CDC (Why they are tracking cell phone usage, I will never understand) less than 35% of Americans, have a landline based phone.

Personally, I think in the not too distant future, 'Pay-TV companies' will no longer install cable or satellite boxes, as we know them now. They will start installing internet capable devices, like a small computer and/or DVR, to your TV. People will then download programming of their choice, and will be charged for the programming that was downloaded. As a matter of fact, I just read a story on Drudge, on how the movie business wants to offer first run movies that are still in the theater, for viewing at home for $30-$50.

»variety.com/2017/film/ne ··· 2013205/