From the New York Times. Since the story on their site would be behind a paywall for some, this link is to the Yahoo version:
www.yahoo.com
One of the Biggest Cable Companies Says Cable TV Isn’t Working
One of the Biggest Cable Companies Says Cable TV Isn’t Working
One of the biggest cable companies in the United States has a message for media companies, its major partners in a decades-old business: The traditional cable-TV model is broken, and it needs to be fixed or abandoned. Cable TV has become too expensive for consumers and providers, Charter...
Cable TV has become too expensive for consumers and providers, Charter Communications said in an 11-page presentation to investors Friday, adding that cord-cutters and rising fees are contributing to a “vicious video cycle.”
The presentation comes amid negotiations between Charter and The Walt Disney Co., owner of popular cable channels including ESPN and FX, which will not be available to Charter’s nearly 15 million pay-TV subscribers until both sides agree on how much Charter will pay Disney to carry its channels. Subscribers to Charter’s Spectrum TV service will be without access to the U.S. Open tennis tournament and college football games during a holiday weekend.
The fight comes at a time of declining subscriptions: More than 5 million Americans end their cable-TV subscriptions annually, according to research from SVB MoffettNathanson.
Almost every traditional media company is trying to hold on to its cash-rich cable partnerships while building streaming businesses that will eventually replace those alliances. But investors in traditional media companies have also grown impatient with attempts to build new streaming businesses, saying they are not as profitable as cable TV used to be.