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News: Cable TV Price War? Don't Count on It
Posted 30 July 2004 - 10:10 AM
Cable TV Price War? Don't Count on It: Analysts
Cable stocks got pounded this week after several of the top U.S. operators posted a sharp decline in video subscribers, but fears of igniting a price war may be premature.
Investors fretted that cable operators, which long reigned over their regional fiefdoms unchallenged, were finally conceding defeat to satellite television services, the DirecTV Group Inc. and EchoStar Communications Corp.
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Posted 30 July 2004 - 11:18 AM
The reason many cable franchises are willing pay hundreds of dollars to 'buy back' your satellite dish rather than reduce your monthly cable rate is because cablecos will do anything to avoid reducing their high cable rate structure because they still believe that the majority of their subs will never go to satellite.
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