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[QUOTE="nzm136, post: 713391, member: 2531"]
Assuming that the cable companies are competent and have cherry-picked the right channels to be in the right group, then you are wrong. You belief is very common, but it you look at my above post, you will see that if someone who knows what they're doing and has good information, they can group channels in such as way as to extract value from customers in a more efficient way.
 
Some of that added value would then be split amongst all the channels in the tier roughly based on the extent that they caused customers to decide to purchase the tier. Most simply, but not necessarily most accurately, this can be done with weighted averages. Similarly, tiers can be grouped together to extract value even more efficiently. That's why you have to have basic to get premium tiers. However, that gets extremely complicated extremely quickly and I would rather not go through the burden of explaining an entire system when we are talking about one fragment of the system. That said, if you really care, let me know and I will email you an excel document that illustrates how it works.
 
This is more aimed at other readers, but for anyone that doesn't believe me, ask yourself "why do the cable companies go though all the effort of bundling?" If a la carte would cause prices to increase, wouldn't that make them more money? If so, why don't they switch?
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