11-08-2010, 12:44 AM
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Philosopher
Join Date: Mar 2008
Posts: 518
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Interesting article, with some equally interesting feedback.
From the article itself:
But a funny thing happened in the second quarter, when, for the first time ever, IPTV and satellite subscriber increases didn't make up for cable losses.... In other words, subscriber losses by "cable" tv providers have - until recently - been at least offset by subscriber gains by IPTV or Satellite providers.
And from the comments to the article, a couple of writers point out that a) the foreclosure storm in certain communities has reduced the number of available households, and b) there appears to be a growing number of "Subscribers" who are cutting back on the level of service they are willing to pay for - even while many other subscribers are INCREASING service levels (perhaps particularly for HD service and / or "Premium" HD channels - ??).
Cannot help but wonder whether this might have a snowball effect: Content Providers are attempting to gain more profit - by increasing Fees to the Distributors (cable, IPTV, satellite...) - which means the Distributors are seeking to increase the fees they are charging to their Subscribers - which, eventually, will drive at least some Subscribers away - which will lower the revenue earned by the Distributors....
Eventually, something will have to give:
Even higher rates, potentially driving even more Subscribers away?
Distributors dropping Content Providers, who - in the Distributor's opinion - are asking too much for their channels? (AT&T U-Verse is currently in a dispute with Scripps, & has dropped a number of channels as a result).
Content Providers reducing THEIR fees - and perhaps, in exchange, reducing the number of Channels, number of shows, and / or Quality of same?
And, of course, in many (most - ?) areas the "Cable TV" provider is ALSO the Internet Provider: as revenues decline in TV Distribution operations, it would be natural to expect a push to Increase the cost of Internet Distribution to make up for the lost TV Distribution revenue.... (In essence, the various initiatives to limit or otherwise control internet "bandwidth" are attempts to raise revenue.)
And so on, and so on, and so on..... 
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