Friday, May 11, 2007

Cable Tiers

As more cable customers choose to get the set top box with VOD and DVR capabilities, they tend to get additional channels on a digital tier, in addition to those channels available on the basic level of service. Digital cable penetration continues to grow, with some markets seeing more than 60% penetration.

Still, the consumer will pay for these channels and the NFL no doubt has a formula for their sports tier that gives them total revenue equivalent to access to basic cable. They lose the right to claim potential access to a larger number of viewers. But in this day of digital where actual viewership may replace the Nielsen sample, it may not matter. Those digital boxes in your home will report all the info it can on members of the family, room the tv is in, and what you watched and how often you channel flipped. Big brother is here.

So, does the NFL really lose; actually, maybe the customer wins. Now you can decide what you want to watch and how much it is worth to you. Economics at play.

New York Supreme Court Rules Operator Can Place NFL Network on Sports Tier

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