[opendtv] Re: Analysis: Broadcast's $1 Billion Pot of Gold
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Wed, 9 Jul 2008 09:17:53 -0400
At 12:38 PM -0400 7/8/08, Cliff Benham wrote:
Craig Birkmaier wrote:
the nation's 93.5 million homes that
subscribe to extended basic cable are paying about $2 BILLION per
month to watch TV programming filled with ads...
Yes, but what they are actually paying for are better, clearer
pictures and more program sources than available through their 25
year old dilapidated outdoor antenna and twin-lead.
Not really.
We pay $49.99 PLUS TAXES for standard analog cable (e.g. expanded
basic). That means that almost $28 per month goes to Cox Cable, while
the other $22 per month goes to the companies that are charging
subscriber fees.
The money that goes to Cox is paying for better, clearer pictures and
the infrastructure that provides more program choice. Limited basic
customers pay only $14.99 per month for this but only get about 21
channels, some of which are not available OTA.
Virtually ALL of the additional channels in the extended basic tier
charge subscriber fees. Obviously Cox is making more off of an
extended basic customer, some of which may be paying for programing -
I have no way of knowing.
What I do know is that I am paying subscriber fees for channels that
I NEVER watch, and I am watching commercials on channels for which I
am paying a subscriber fee.
The $2 billion per month I wrote about goes directly to the companies
that provide the content that is filled with ads...
If you add in the rest of the cost of extended basic cable U.S.
consumers are paying nearly $5 billion per month to watch TV channels
crammed full of ads.
Regards
Craig
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