[opendtv] Re: 247wallst.com: Pay TV Shows Troubling Subscriber Trends

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 17 Sep 2014 10:17:45 -0400

On Sep 15, 2014, at 8:58 PM, "Manfredi, Albert E" 
<albert.e.manfredi@xxxxxxxxxx> wrote:
> "Home antenna use rose 7% in 2013, according to Strategy Analytics, to 21.5 
> million households."

Some of this is cord cutters. Some is people moving to DBS MPVDs, who make it 
easy to use an antenna for local channels.
> Also, pay attention Craig, it seems like the cablecos are increasing their 
> rates, to keep good profit margins. I've seen others mentioning this too. It 
> is obvious, is it not, that such tactics ultimately fail? It's a bit like 
> public transportation cutting service to offset loss in ridership. In 
> electronic circuits, that's called "positive feedback," which is to be 
> contrasted with the self-regulating "negative feedback" designs. In other 
> words, a scheme that only makes matters worse.

Pay attention Bert.

Cable rates have increased at 2-3 times the rate of inflation since the 1980's. 
This brought about the Cable Act of 1992, which allowed the content congloms to 
develop the second subscription fee revenue stream, and led to their takeover 
of 90% of the content delivered by the MVPDs. 

Your public transportation analogy is irrelevant. The congloms create positive 
feedback by adding services that increased perceived value...

Like authenticated delivery via the Internet.

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