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Guest Message by DevFuse

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Rate increases coming, could be worse


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133 replies to this topic

#121 OFFLINE   Bambler

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Posted 01 October 2012 - 02:52 PM

One thing I don't see being discussed in all of this is the typical advertisement revenue shared by the operator (i.e., DirecTV) and source provider or "cable/satellite" channel.

There's a big misconception that if a channel gets added at, for example, $1.00 per subscriber, that DirecTV automatically has to increase rates that much to maintain the level of revenue they take in. Not true, but it's something DirecTV is definitely spinning to their advantage.

I have no idea how the model exactly works, but DirecTV, like any cable operator, will sell you ad space.

The amount of money gained by this revenue stream (and split in who knows what way between the channel and DirecTV) is significant. That is not to say that carriage fees can be entirely offset by the amount of revenue gained through ads, and some costs might have to burdened by the consumer (or maybe it is enough, who knows), but it's definitely not the "parity" situation DirecTV is playing.

Edited by Bambler, 01 October 2012 - 02:58 PM.


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#122 OFFLINE   Mike Greer

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Posted 01 October 2012 - 06:40 PM

Exactly...and what many a la carte advocates don't realize is that most would be forced to the second option: cease transmission. We would be left with perhaps 10 general interest channels.

But, on the bright side, they'd all have terrific picture quality. ;)


Maybe 10 plus the broadcast networks.....

I'd be good with that!:)

#123 OFFLINE   PrinceLH

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Posted 01 October 2012 - 07:37 PM

Some cable channels need to die. Bundling is a lifeline to those channels that don't deserve a place on the dial.

#124 OFFLINE   inkahauts

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Posted 01 October 2012 - 08:55 PM

One thing I don't see being discussed in all of this is the typical advertisement revenue shared by the operator (i.e., DirecTV) and source provider or "cable/satellite" channel.

There's a big misconception that if a channel gets added at, for example, $1.00 per subscriber, that DirecTV automatically has to increase rates that much to maintain the level of revenue they take in. Not true, but it's something DirecTV is definitely spinning to their advantage.

I have no idea how the model exactly works, but DirecTV, like any cable operator, will sell you ad space.

The amount of money gained by this revenue stream (and split in who knows what way between the channel and DirecTV) is significant. That is not to say that carriage fees can be entirely offset by the amount of revenue gained through ads, and some costs might have to burdened by the consumer (or maybe it is enough, who knows), but it's definitely not the "parity" situation DirecTV is playing.


Eh, I see where your going with that, but, they already have that money coming in, and I doubt that they are getting as much more every year by any stretch as what they are being asked to pay in increases. SO I would say they likely have to cover the full value of the increase, or at least close to it.

#125 OFFLINE   harsh

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Posted 02 October 2012 - 08:19 AM

can also get a cable card for less then $10 a month.

If you look at what devices support CableCard anymore, it is only cable boxes. TVs no longer come with CableCard support and only a relatively small percentage of TVs supported it when it was the order of the day.

Too often we enjoy the comfort of opinion without the discomfort of thought. -- JFK


#126 OFFLINE   Diana C

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Posted 02 October 2012 - 08:47 AM

Maybe 10 plus the broadcast networks.....

I'd be good with that!:)


My fear is that 8 of them would be reality shows only, one would be non-stop infomercials, and the 10th one would be Fox News. :eek2:

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#127 OFFLINE   Mike Greer

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Posted 02 October 2012 - 10:23 AM

My fear is that 8 of them would be reality shows only, one would be non-stop infomercials, and the 10th one would be Fox News. :eek2:


Yikes - when you put it that way.... Maybe I should reconsider!

That would just leave me with the broadcast networks.

Maybe we should decide what the 10 channels are.

#128 ONLINE   Drew2k

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Posted 02 October 2012 - 12:04 PM

For Optimum, DVR service is $10.95 month and each cable box is $6.75 a month. Each CableCard is only $2.

So I returned my cable DVR and got a TiVo Premiere for free with a 2-year activation and got a CableCard, and I've been saving money, even with TiVo's $13.95 a month fee.

#129 OFFLINE   Jon J

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Posted 02 October 2012 - 12:27 PM

Exactly...and what many a la carte advocates don't realize is that most would be forced to the second option: cease transmission. We would be left with perhaps 10 general interest channels.

I seem to recall something called the law of supply and demand and this may relate to that somehow. If we general interest subscribers stop subsidizing the niche channels they would go away. Would that be a bad thing? :lol:
When news breaks...we fix it.

#130 OFFLINE   Diana C

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Posted 02 October 2012 - 01:35 PM

I seem to recall something called the law of supply and demand and this may relate to that somehow. If we general interest subscribers stop subsidizing the niche channels they would go away. Would that be a bad thing? :lol:


Depends on what you define as niche. If we consider anything below the top 10 cable networks as potentially niche channels, that would include Nickelodeon (#11), SyFy (#12), MTV (#16), AMC (#17) and Comedy Central (#19) based on their 2011 primetime ratings.

There are a lot of popular channels that didn't even make the top 20 - Speed, NFL Network, CNN, BBCA, Lifetime, etc.

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#131 OFFLINE   Mike Greer

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Posted 02 October 2012 - 02:42 PM

I am surprised (and saddened) that Fox News is on the list. Also surprised with MTV even being in the top 300! Makes me afraid for the future.

Other than those two - I'd be good with the top 20 and to dump the rest! How soon can we make this happen?

#132 OFFLINE   PrinceLH

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Posted 02 October 2012 - 08:02 PM

I am surprised (and saddened) that Fox News is on the list. Also surprised with MTV even being in the top 300! Makes me afraid for the future.

Other than those two - I'd be good with the top 20 and to dump the rest! How soon can we make this happen?


Why so sad about FOX News on the list? I think that it's a good thing, that FOX News is doing so well. Who's going to balance off the mainstream media's biased coverage, if FOX News doesn't?

I'm also pleased to see Nick At Night's ratings tank. It wouldn't have anything to do with their desire to over jam the commercial content and make their shows almost unwatchable now, would it?

#133 OFFLINE   Diana C

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Posted 02 October 2012 - 08:16 PM

Fox News is totally biased towards the right. MSNBC is totally biased towards the left. Everybody else falls somewhere in between.

Almost makes you want to go read a paper...for as long they last.

That's what has me worried about the future.

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#134 OFFLINE   Dude111

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Posted 02 October 2012 - 11:21 PM

Directv's average customer bill is in the low $90s

Ours is $49.95!!! (When i signed up it was $29.95 and not much worse then)


I cant believe how high it is now AND FOR BASICALLY CRAP!!




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