mnradiofan said:
This is one example where I feel that it's too bad we can't just cut out the middlemen and go directly to the content providers. Right now, it ends up making the cable and sat companies look bad for constantly raising rates, but if Fox came directly to me and said "we think you should pay double to continue to receive our channels" then they could get more direct feedback from the very people that they are ALSO trying to sell advertising to, plus it would put the choice in the hands of the consumers as to what channels they want to pay for.
I keep hearing that reasoning, but to me, it doesn't add up. If the content providers were providing the service directly to consumers, they would all have to put new customer service infrastructures into place in order to bill consumers, process payments, cut-off service to deliquent customers, etc. All this would cost them money. "Middlemen" exist for a reason - they can bundle services and provide customer service for combined providers at a lower cost per provider - and therefore a lower cost per consumer.
I also don't buy the argument that an "a la carte" system (customers paying for only the channels they want) would save money for most consumers. I know there are a few of you out there who are content with just the big 4 networks, and a few local indies. If that was my preference, I'd erect a big attenna on my roof and get everything OTA. But that's not me, and I think I'm a fairly typical 21st Century TV viewer. My wife keeps an eye on our investments by watching CNBC, we watch CNN for news at least a few times per week, I prefer the dramas provided by the basic cable networks (FX, TNT, AMC, etc.), but I still watch a few shows on each of the Big 4. There are a couple shows I watch regularly on BBC America, etc.
All told, we probably watch 25 channels regularly, and another 25 during the course of a month. So if the providers or the cable company charged me only $2 per channel for those 50, I'd be paying about what I pay now for Comcast. If I was charged $3 per channel, I would be paying considerably more - with many fewer choices.
I don't see the upside.