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Discussion in 'IPTV and Internet Video Delivery' started by Paul Secic, Dec 29, 2010.
Seems everybody is doing it. As it usually works with most providers, the subscribers to the lower-end progamming packages get hit the hardest, percentage-wise (up to 10.2%).
Many legacy customers, especially with higher-level programming packages, won't get hit nearly as hard.
Fox Broadcasting has set the benchmark. It's getting 55 cents a sub next year, going up to 1 dollar a sub by year 5. CBS, ABC, NBC and Univision will all ask for, and get, the same amount, even in arbitration. So, look for a minimum 10% increase across the board. What's the median weighted CPI? About 0.6% over the last twelve months.
I think it is closer to 1.1% with the hop in energy prices.
most everything I buy has had major price increases over the last two years,
and yet "they" try to claim there is no inflation.
the CPI needs to be revised to match modern life ... to reflect what's "really" happening
The 12 mo BLS U.S. city average unadjusted All Items as of November 2010 has risen 1.1% since a year ago and 4.1% since three years ago.
For those who, like me, are curious, Social Security recipients get no increase in 2011 because the index as of September 2010 was actually -0.2% (less than) September 2008. If November were used, November 2010 was +3.0% over November 2008. As you can see, these numbers are subject to significant anomalies over short periods.
IMHO anything less than 10 years can be argued to death. The index in November 2010 is 25.7% higher than November 2000, which feels about right to me since my hip is aching as I write this.:sure:
The problem with comparing that to the cable/satellite bills is that comparing the services now to ten years ago is like comparing apples and oranges.
On the other hand, the amount of money paid to local broadcast stations for retransmission was a big zero ten years ago. The content quality has gone to crap and we're paying through the nose for these channels unless you're lucky enough to get them off-the-air for free.
You got that right. It's very easy to forget that 10 years ago, there was no:
- Downloadable content
- Networking capability
And the average install was 2 basic receivers. Folks demand a LOT more these days.
There was definitely HD and DVR's 10 years ago, albeit no HD DVR's.
Don't buy the argument, on many levels. First, we are watching about the same amount of TV today vs 1 decade ago.
Two, if I accept your line of reasoning, then we can't ever make price comparisons over time. A mid-sized car today (or a luxury car) can hardly be compared to its counterpart ten years ago, as today's version offers many more standard safety and performance features. Yet, in real terms, the car is cheaper.
Well, since I prefer to define TV as just about anything streaming into your home, I guess I'd agree.
It may be fair to compare car price growth to TV set price growth.
But it really isn't fair to compare phone service in 1960 to phone service today. The technology has advanced so much, the nature of the use has radically changed. It just isn't the same service as regularly used by most people.
I own a crank powered Victrola and old, really old, 78 rpm phonograph records. I really can't compare original costs between a one-sided early 1900's record and the cost of an MP3 download on my iPod using the CPI. There is no way I can carry that Victrola down the jogging trail changing records when a song is over.
Simply, while I had satellite in the late 1990's I didn't "time shift" much and most certainly didn't season shift. I didn't skip commercials, which made me a supporter of the 1958 TV advertising economic structure that the industry is struggling to replace. And truthfully, I didn't watch a lot of cable channel programming.
Now I watch a recorded TV program when I want to delivered by my Slingbox to my iPad via my home network or the internet. Others watch TV from a network web site via their smart phone. In our home theater, we watch more cable and premium channel content than broadcast network content. And if the weather or technical glitch prevents me from recording something I want to see, it is likely I can watch it about when I would have watched it, streaming from the network web site, just with a few commercials.
I'm uncomfortable comparing prices using the CPI. In shorter periods many anomalies distort the CPI numbers. In long periods we find ourselves comparing the cost of feeding and caring for a horse to the cost of operating a Prius.
I agree. But I think a 10% increase is gouging. Another example of a corporation trying to make the shareholders and Wall Street happy. Damn the customers.
Over in the thread Retransmission fee disputes - satellite and cable join forces I'm trying to keep up-to-date about what's going on in retransmission disputes across the nation. Time Warner Cable just started importing signals from other DMA's into areas of dispute with Smith Media. Of course, Smith Media is appealing to the FCC for a cease order.
The point I'm making over there is these media companies are picking us off a few at a time in order to pick our pockets in the future knowing we'll blame the cable/satellite/telco company for rate increases.