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Originally Posted by DoubleDAZ 
Hope this isn't considered bickering, but that is kind of silly, isn't it? I wish more companies would just be satisfied with a decent profit and not try to extract every dime they can regardless of the economy. Yes, I understand supply/demand and pleasing shareholders, but IMHO that is what we lost with the demise of mom/pop shops. Most mom/pop shops just wanted enough to live a nice life, now it's all about corporate greed, or at least it seems that way.
Hope this isn't considered bickering, but that is kind of silly, isn't it? I wish more companies would just be satisfied with a decent profit and not try to extract every dime they can regardless of the economy. Yes, I understand supply/demand and pleasing shareholders, but IMHO that is what we lost with the demise of mom/pop shops. Most mom/pop shops just wanted enough to live a nice life, now it's all about corporate greed, or at least it seems that way.
I think there is a misconception about how pricing a product or commodity works. You price your product based on the market, not based on how much it cost to make it, plus a "decent profit." What it cost you to make it has nothing to do with pricing. Price it too high and no one will buy. Price it too low and you lose money. The trick is finding the sweet spot which is where profit is maximized. Again, it has nothing to do with the cost to produce the product, and everything to do with the market.
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Isn't that a little harsh? I don't like the cost of new cars either, but I may need one eventually. Does that mean I can't complain about their high cost? I still think cable/sat is a good enough deal for me to keep paying for it, but I also think it is higher than it needs to be and I blame that on it's lack of competition and the power of the Disney's of the content world. If we don't complain, what incentive is there for them to hold the line or find new ways to market their product that makes more sense?
Isn't that a little harsh? I don't like the cost of new cars either, but I may need one eventually. Does that mean I can't complain about their high cost? I still think cable/sat is a good enough deal for me to keep paying for it, but I also think it is higher than it needs to be and I blame that on it's lack of competition and the power of the Disney's of the content world. If we don't complain, what incentive is there for them to hold the line or find new ways to market their product that makes more sense?
Let me answer your question with a question. If you DO complain, what incentive is there for them to hold the line or find new ways to market their product that makes more sense?
The cable company is not going to hear one of their customers say "I really like cable but the cost is just way too high" and then think, "Oh, we should lower the price, because Joe Subscriber says the cost is too high. As long as Joe Subscriber continues to subscribe at the current price, there is NO incentive for them to change. Complaining will get you nothing. Of course we all have the right to complain - I'm just pointing out that it doesn't do anything to change things. I dunno, maybe people are complaining in the hopes that other people (not them) will hear them and then go cancel their subscriptions so cable will get the message?
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Originally Posted by MRM4
We'll see. There are plenty of people out there like me that will not give in to internet access for TV viewing until PQ improves greatly across the board.
We'll see. There are plenty of people out there like me that will not give in to internet access for TV viewing until PQ improves greatly across the board.
Of course. But what if I told you that with a 20Mb internet pipe, I could sell you a set top box that will connect via Ethernet to my Internet-based "cable" company. I allow you to buy channels one at a time (a la carte) and I also have a few package deals. You will pay me a monthly access fee and then the price per channel or package. Your set top box will function just like a cable/satellite box that you're used to, including DVR functionality. The picture quality will match or exceed what you get from cable.
This technology exists today and someone could start this company tomorrow. It's only a matter of time.
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Originally Posted by VisionOn
A few years? You greatly overestimate not only the number of people who use streaming services but those who have an antenna.
Cable dominates in urban areas, especially inner city areas where multiple dwellings are wired for cable and nothing else. A huge number of people do not want to install an antenna and large numbers of mid-older generation have little interest in trying to figure out how to stream something, learn new hardware and keep a network running when things go wrong.
A few years? You greatly overestimate not only the number of people who use streaming services but those who have an antenna.
Cable dominates in urban areas, especially inner city areas where multiple dwellings are wired for cable and nothing else. A huge number of people do not want to install an antenna and large numbers of mid-older generation have little interest in trying to figure out how to stream something, learn new hardware and keep a network running when things go wrong.
I don't think the people you describe here would have a problem with a company such as what I described just above.
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Cablecos will be around for a long time. Especially when they literally own the internet in some areas and are fighting tooth and claw to ensure that what you plan to do with their connections gives them more money.
As recently as Monday TWC were still planning for just that scenario: [CFO Irene] Esteves believes usage-based pricing for Time Warner Cable broadband will become a reality sooner or later. Charging “heavy users” more would already be familiar to consumers used to paying higher prices for heavy use of other services, and she claimed light users would have the option of paying less.
But despite favorable reception to the idea of usage pricing by Wall Street, Esteves acknowledged the company’s past experiments in usage pricing didn’t go as planned, and she suggested the company will introduce usage pricing “the right way rather than quickly.”
Cablecos will be around for a long time. Especially when they literally own the internet in some areas and are fighting tooth and claw to ensure that what you plan to do with their connections gives them more money.
As recently as Monday TWC were still planning for just that scenario: [CFO Irene] Esteves believes usage-based pricing for Time Warner Cable broadband will become a reality sooner or later. Charging “heavy users” more would already be familiar to consumers used to paying higher prices for heavy use of other services, and she claimed light users would have the option of paying less.
But despite favorable reception to the idea of usage pricing by Wall Street, Esteves acknowledged the company’s past experiments in usage pricing didn’t go as planned, and she suggested the company will introduce usage pricing “the right way rather than quickly.”
Cable companies will be around, yes. But, they'll be around as Internet providers - the conduit if you will. They may continue to be a source of content for a while as well, but more and more options for that will open that can use the conduit that is in place. Satellite has no chance because they can't adapt into a data service provider because of how their technology works.
We've seen how well usage based pricing has worked in the past (it has not). Consumers want to know what the monthly cost will be. I'm not sure what plans they have in mind to be able to change that consumer mindset, but I doubt they will be successful.
