Viewers Pay Price for Cable Wars ( Parade Magazine article)

Fringe Reception

Super Moderator, Chief Content Editor
Staff member
#1
Viewers Pay Price for Cable Wars | Parade.com


From the article:

... "That money will ultimately come out of cable subscribers’ pockets, according to analysts like Joel Kelsey of Consumers Union. “Cable companies can raise the rates with impunity because there aren’t many competitors in this marketplace,” he explains. In fact, rates have risen twice as fast as inflation since 1996." ...
 

CptlA

DTVUSA Member
#3
From the article

Cable companies pay basic-cable channels an average of 21 cents per customer per month to carry their programming.
There are so many variables to that statement, it makes me spit. Is that per year? Is that per channel?

Cable companies have had it good for so long with getting free content from basic channels. So what if they take a haircut off their bottom line.
 

Piggie

Super Moderator
#4
Why should they take a haircut when even though people complain, they pay the bill.

As long a you (meaning the third person plural form of you) pay the bill or tolerate the injustice, it continutes and expands.
 

BCF68

DTVUSA Member
#5
From the article



There are so many variables to that statement, it makes me spit. Is that per year? Is that per channel?

Cable companies have had it good for so long with getting free content from basic channels. So what if they take a haircut off their bottom line.
Um it's pretty simple it says it's 21 cents per CHANNEL per MONTH

So if your cable has 60 channels it's 60 X 21 cents or $12.60 PER MONTH.
 

Orrymain

, Blogger: Orry's Orations
#6
I actually wish they were regulated because they do get away with doing whatever they want. What I pay is double what I paid 10 ten years ago. It's insane.
 

Mockingbird

DTVUSA Member
#7
I think that the cable industry sadly under estimates that they may very well have competition from the phone providers that also provide internet services. It is just like the land line phones, when cell phones caught on the phone company had to diversify to remain competitive and guess where they went, yes you got it! and now it will boil down to the net vs cable for programing. since you can take your laptop anywhere these days cable companies better wake up. people want entertainment and people are willing to pay for it, you better believe that even if the cost is higher people will choose net TV if they travel alot and have the ability to access it anywhere anytime. I think that putting DVR players in cars has shown that is going to be the future for many american families.

I laugh because I get calls regularly from Time warner trying to sell net service or telephone service, seems they fell behind in understanding how attractive packaging bundles of services are. With laptops going for $99 with a two year net agreement from verizon you will see tons of college kids opting out of cable, why bother when they can buy the DVD or catch it on some internet site
 

n2rj

Moderator
Staff member
#8
I actually wish they were regulated because they do get away with doing whatever they want. What I pay is double what I paid 10 ten years ago. It's insane.
I wouldn't go only blaming the broadcasters for that. Before these very public disputes and before they started to charge fees, cable rate increases have pretty much been on the up and up. I remember in the early 2000's Time Warner of NYC was increasing my rate by about $5-$6 per year. After a while I went with DirecTV who had no price increases for a long time. But unfortunately they began to raise rates too.

In fact if you really want someone to blame for raising cable rates, blame pro sports. They have to pay those expensive salaries somehow.
 

Orrymain

, Blogger: Orry's Orations
#9
I don't buy into that. I have rate hikes galore and I'm not getting anything new out of it at all. We don't even get a lot of the channels that other companies air or, for that matter, other areas of Comcast. I'd welcome regulation. It can't be worse than what I've had for the last several years.
 

bicker

DTVUSA Member
#10
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-10-848A1.pdf

Of course, as a matter of law, there is effective competition for advanced subscription television services throughout the United States, but with regard to basic service the criteria are more stringent, so the matter must be considered on a town-by-town basis. A number of towns in my local area now have reached the more stringent threshold applicable to essential services (a distinction that is necessary since the FCC exempts satellite service providers from providing those essential services). This order is just the latest of them, and notable to me only because it covers a number of communities (while most of the orders I've seen so far cover just one community, including another order that was released by the FCC on the same day).

This very clearly refutes the claims, which we've read quite often, that subscription television isn't a competitive business. Not only is it a competitive business, but it is getting so competitive now in some areas, that the FCC, despite its pro-satellite/anti-cable tendency, is removing all price regulation, including for essential services, due to the presence of strong, healthy competition.
 

Yes616

The Mod Squad
#11
This makes me remember May 1977 When I had a VHF OTA antenna aimed at New York City. A new radio station (WSUL 98.3) started operations with their transmitter just a couple hundred feet from my location. WPIX 11 was impossible to see OTA anymore so I went to cable and I was being charged $250.00 for the house hook-up. I was actually able to get WSUL to pay for this. But at this time I started to pay $19.90 per month for the whole deal. Here is what I got..
2 - WCBS New York CBS
3 - Home Box Office (PREMIUM COST $9.95 EXTRA)
4 - WNBC New York NBC
5 - WNEW New York Ind (today's WNYW Fox)
6 - Cable 6 (Local) - Reuters News, Stock prices scroll and a flip to locally taken pictures at times.
7 - WABC New York ABC
8 - WNEP Scranton ABC
9 - WOR New York Ind (todays WWOR MyTV)
10 - WBRE Wilkes-Barre NBC
11 - WPIX New York Ind (today's CW)
12 - WDAU Scranton CBS (today's WYOU CBS)
13 - WNET Newark, NJ PBS

Not bad.

In October 1979 add:
21 - Cinemax (PREMIUM ADD $9.95)

In January 1980 add (For another $4.95):
16 - Cable News Network
17 - Nickelodeon (7AM-8PM) / ARTS "Alpha Repatory Television Service" (8PM-Midnight) / Superstation WTBS (Midnight - 7AM)
18 - ESPN
19 - USA (5PM-Midnight) / Catskill OTB (racing printed on screen)

6 - Home Shopping Network added some time along the way in the early 1980's part time. Cable 6 added a live newscast in the evenings.

A year later (Jan 1981) came:
20 - Showtime (PREMIUM ADD $9.95)

We are now up to $44.80 for everything here.

Those were the early channels from Cablevision Industries (CVI) later bought from Alan Gerry by TWC in 1995.

The big problem these days are there are too many channels. Somebody else can do the price per channel figuring here but I know that is less now.
 
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Fringe Reception

Super Moderator, Chief Content Editor
Staff member
#12
Ouch: However, at 'only' $45 per month that's comparitively inexpensive compared to others I have persuaded to go OTA to eliminate their monthly bill. Free works for meeee!

Jim
 

n2rj

Moderator
Staff member
#13
Our "broadcast basic" tier here is $22 plus the franchise tax. First digital converter is free. This is what you get:

2 WCBS (CBS New York) Broadcast Basic
3 C-Span Broadcast Basic
4 WNBC (NBC New York) Broadcast Basic
5 WNYW (FOX New York) Broadcast Basic
6 QVC Broadcast Basic
7 WABC (ABC New York) Broadcast Basic
8 WNJN (PBS New Jersey) Broadcast Basic
9 WWOR(My Network New York) Broadcast Basic
10 Public Access (Classifieds) Broadcast Basic
11 WPIX (CW New York) Broadcast Basic
12 News 12 NJ Broadcast Basic
13 WNET (PBS New York) Broadcast Basic
14 WNYE Broadcast Basic
15 WPXN (Pax New York) Broadcast Basic
16 WXTV (Univision) Broadcast Basic
17 CNN Headline News Broadcast Basic
18 WMBC (Independent) Broadcast Basic
19 TV Guide Broadcast Basic
20 Educational Access Broadcast Basic
21 EWTN Broadcast Basic
22 WGN (Chicago) Broadcast Basic

CNN HLN in broadcast basic was a result of them dropping WTBY and channel 17 now had an open slot.

Expanded basic which is what most people have is $66/month. If you want HD it's $5 extra but HD locals are included in expanded basic without the HD package.

Yes, cable is expensive. I used to get the full "expanded basic" lineup from DirecTV for $35/month.
 
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bicker

DTVUSA Member
#14
One of the things to keep in mind about those packages, though, is that DirecTV only provides about 40 HD channels for that price. Comcast also had a $35 tier, here in Burlington, which also provides about 40 HD channels. So if you're only looking at HD, then they're pretty much the same price. If you're going to make use of SD channels, DirecTV gives you about 100 SD channels that Comcast doesn't give you for that price.
 
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