At 10:11 AM -0500 12/6/04, Manfredi, Albert E wrote: >Craig Birkmaier wrote: > >> Why are the media conglomerates vertically integrating >> around content? Perhaps this line from the following >> story provides a clue... >> >> > Why are rates rising in an era when inflation is so >> > low? The cable and satellite industries are paying >> > dearly for programming, which accounts for about 50% >> > of their operating budgets. > >This is silly. The simple answer is, "Rates are rising >because the cable and DBS companies can increase their >rates and people still pay." If people are willing to >pay, and the sale is not illegal, there's nothing to >stop the seller from increasing his price. And the price >by definition reflects the value placed on the product. >Duh. > >> Consumers are the big losers, as they are forced to >> pay more and more for advertiser supported content. > >Consumers are only the losers if they're coerced to pay. >They are not. There's no gun to anyone's head. This is >just entertainment, for heaven's sake. > I am not coerced to drive either...it is simply a necessity like electricity, water, telephone and cable (or DBS). I do not have much control over the cost of my car insurance (other than keeping my record clean). I do not have ANY control over the cost of gas, other than driving around looking for the cheapest price. And I do not have any control over the escalating cost of vehicles due to government mandates on "stuff" that must be included in every vehicle. The only valid thing in your post is the reality that the pricing for multichannel TV is not so high as to cause people to reject the value proposition. Or another way of saying this is that even at these ridiculous prices, cable and DBS are still a better value than OTA the OTA TV proposition. We could all eat hot dogs and hamburgers every night instead of steak and grilled seafood. But many people are willing to spend a bit more for a higher quality product. None of this changes the fact that the media conglomerates continue to push the cost of their content every higher, because they have so much leverage over the content distributors. This leverage is provided in part through their content oligopoly, and in part because of government regulations that allow the media conglomerates to hold broadcast content hostage in order to push up the price on other networks. All of this is NOT unusual when the government steps in to regulate what should be an open marketplace. I now routinely see add on fees on many bills with "regulatory recovery fees." Regards Craig ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.