[opendtv] Re: speaking of cable ...

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 30 Jan 2008 11:44:41 -0500

At 3:43 PM -0800 1/29/08, Kon Wilms wrote:

All of these cablecos and telcos are underhanded scumbags. I get my
own back by sucking down as much of their bandwidth as I can.

I almost posted this story yesterday, but chose not to because it had a number of factual errors.

But the main thrust is correct - these folks have been trying to hide the fine print of their "deals" for years.

The real financial benefit of being in the multichannel TV market is the ability to generate a massive cash flow, off of which you can gain significant financial leverage. These guys are all to happy to collect money for local, state and the federal government, for the media conglomerates, for the handful of cable networks NOT owned by the big five, and for local broadcasters. The more they collect, the more free cash flow they have to manage.

The article was incorrect about when and how this happened. It was the Cable act of 1992 that started the ball rolling and started rates rising at triple the inflation rate. The ability to move into the broadband and telco business really enhanced the cash flow picture...


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