[opendtv] Re: News: Fox News Wants To Double License Fees
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 11 May 2005 18:52:57 -0400
Craig Birkmaier wrote:
> John McClenny wrote:
> >
> > The flip side of this is that we would pay more for the
> > content we do watch if that cost is spread over fewer
> > subscribers.
>
> I doubt that this would be true.
>
> Many networks would eliminate subscribe fees altogether if
> faced with the possibility that a significant number of
> homes would choose not to view their ads.
You're no doubt correct that the networks would provide those
programs no one is watching for free rather than risk them
not being broadcast at all. But the costs of running a cable
plant won't go down appreciably no matter what programs are
transmitted. So subscription fees would go up for the basic
service.
What's more, the congloms that create all this content would
most likely raise the fees for the programs people continue
to want.
Costs and prices are usually balanced very efficiently. I
would be extremely surprised if something as trivial as
going to an a la carte scheme would create any across the
board benefit to consumers.
Bert
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