Friday, July 9, 2010

Will Cable Subscription Prices Drop?

As the media moguls socialize this week in Sun Valley, one inkling of cable news has emerged. "Cable operators and entertainment companies are talking about selling cheaper cable TV packages with fewer channels to attract and keep customers trying to save money in a weak economy." What, lower prices for cable. Ahhh, lower prices for less channels. But do cable agreements allow them to move networks off the lowest tier and create a new basic level of service. For some networks, programming license fees could rise should actual subscription as a percentage of total basic homes drop below a certain level. That could lead to higher programmer fees per unit. Would cable really want to be charged higher license fees?

So while this rumor sounds interesting, I doubt it can truly happen. If cable companies lower their cable pricing, then it will be used to protect their subscriber base from cord cutting and other competition. Lower profit margin from cable, higher from broadband and phone. Isn't that what the triple play bundle is all about.

1 comment:

  1. One of these days, we'll truly get ala carte pricing, and then I'll never have to support pointless programming like World Fishing Network with my overpriced subscription fees.