Semi OT: Cable TV (long rant)

[cliftonparksufan]

I dont even want to tell you what I pay for cable.

I wish I could do an ala carte thing with cable. I would probably have only 20 channels. I will however NEVER give up my tv to watch stuff on a computer or laptop. I mean I need some joy in my life an holding a laptop on my fat stomach while I lie on the couch is not my idea of watching TV.

I'm old school. I dont own an Ipod and probably never will. I have never used netflix or red box. I always pay in cash and only use a CC for trips and big purchases. It drives me crazy when I am in line to get a sandwich or something like that and the douchebag in front of me pays for a $2.87 meal with a debit card.

I agree with a lot you are saying but I can't believe you don't use your CC for everything. Nowadays there are a lot of CC companies paying cash rewards and I easily get back $500 or so each year for free. I've never figured out the exact amount, but it's a ton better than what the banks are paying for their CD's or savings accounts. Plus that would help pay the cable bill for anyone who would question the high monthly amount.

 

[Bayside44]

How many of your kid's shows are live? If they were downloaded how would it be different that watching it streamed via cable? There is no difference.

Why the hassle, it's just another thing to do. You get a bunch of kids channels, don't like something go to on demand.

You live your whole existance paying for things you don't use. TV is the least of it.

 

[Marsh01]

I agree with a lot you are saying but I can't believe you don't use your CC for everything. Nowadays there are a lot of CC companies paying cash rewards and I easily get back $500 or so each year for free. I've never figured out the exact amount, but it's a ton better than what the banks are paying for their CD's or savings accounts. Plus that would help pay the cable bill for anyone who would question the high monthly amount.

I guess I pay for stuff more often than not (groceries are one) but I dont pay with a CC for a $9 meal or a $13 shirt or something like that. It really blows me away that noone carries cash anymore. I asked a guy at work if he could break a twenty about a week ago and he said he never carries any cash. I thought he was joking.

 

[Millhouse]

scooch do i really have to do the cable bundling example again?

i really need to save it to spare me the work

sigh

simple model assumptions for easy math

******
1 cable company CableCo
2 customers Joe and Bob
2 channels Sports and News

Joe would pay $10 for Sports and 3 for News
Bob would pay $10 for News and 3 for Sports.

CableCo knows that each channel is worth 10 to one customer and 3 to another but doesn't know the preferences of each individual customer.
******

CableCo Ala Carte: Pricing would then be $10 for each channel.
Joe and Bob get one channel that is worth $10 to each of them. CableCo gets $20

CableCo Bundled Pricing: Pricing would be $12 for the bundle. Joe and Bob get 2 channels for $12 that is worth $13 to each of them. CableCo gets $24.

Bundling is a win win. CableCo has more profit, Joe and Bob get a dollar of "consumer surplus"

The math gets difficult with more people and more channels but the assumptions are the same. If the cable company is unable to charge each person what they value each channel and if people value channels at less than what CableCo would charge ala carte, the bundle makes everyone happy.

People don't realize that CableCo will charge a lot per channel ala carte.

 

[PhatOrange]

I dont even want to tell you what I pay for cable.

I wish I could do an ala carte thing with cable. I would probably have only 20 channels. I will however NEVER give up my tv to watch stuff on a computer or laptop. I mean I need some joy in my life an holding a laptop on my fat stomach while I lie on the couch is not my idea of watching TV.

I'm old school. I dont own an Ipod and probably never will. I have never used netflix or red box. I always pay in cash and only use a CC for trips and big purchases. It drives me crazy when I am in line to get a sandwich or something like that and the douchebag in front of me pays for a $2.87 meal with a debit card.

they make smart tv's now.

 

[Millhouse]

Right now I can go to a bunch of cable channel websites and watch episodes for free. I can also get network TV for free. Those are both facts.

bandwidth isn't free

 

[Moontan]

bandwidth isn't free

and it isn't unlimited

 

[Scooch]

scooch do i really have to do the cable bundling example again?

i really need to save it to spare me the work

sigh

simple model assumptions for easy math

******
1 cable company CableCo
2 customers Joe and Bob
2 channels Sports and News

Joe would pay $10 for Sports and 3 for News
Bob would pay $10 for News and 3 for Sports.

CableCo knows that each channel is worth 10 to one customer and 3 to another but doesn't know the preferences of each individual customer.
******

CableCo Ala Carte: Pricing would then be $10 for each channel.
Joe and Bob get one channel that is worth $10 to each of them. CableCo gets $20

CableCo Bundled Pricing: Pricing would be $12 for the bundle. Joe and Bob get 2 channels for $12 that is worth $13 to each of them. CableCo gets $24.

Bundling is a win win. CableCo has more profit, Joe and Bob get a dollar of "consumer surplus"

The math gets difficult with more people and more channels but the assumptions are the same. If the cable company is unable to charge each person what they value each channel and if people value channels at less than what CableCo would charge ala carte, the bundle makes everyone happy.

People don't realize that CableCo will charge a lot per channel ala carte.

Yeah, I don't even bother anymore but that's it. A la carte sounds great, until you actually implement it.

But even aside from that, the point about broadband vs. TV is another pertinent one. If Cable Company X who also is a major Internet provider starts to significantly lose TV subscribers, and thus revenue, they won't just sit idly by. They will change the model to maintain revenue. So maybe in some world your TV subscription goes from $100 t0 $40, but then expect your broadband subscription to go from $60 to $120.

Plus, if the existing business model goes away (and I'm not arguing for it, I'm just stating economic realities) then the economics of show production become radically different. Think AMC is going to be investing millions into stuff like Mad Men, Breaking Bad, Walking Dead, etc if they can't monetize their subscribers like they once could? No chance. KO will get his free content, which will be devoid of high-production quality scripted fare, and will be user generated stuff and reality crap.

 

[oldpinepoint]

I'm not sure about cable tv but this $4.00/ mo lease fee on my cable modem is some ing bullshit