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Cable Pricing Wars
Posted on 3/17/15 at 10:07 am
Posted on 3/17/15 at 10:07 am
With HBO and Showtime allowing cord cutters the streaming option and with Slingbox and Apple giving customers options, will cable companies finally start to cut pricing?
I say no. The idiots will probably try to raise prices to offset the loses.
I say no. The idiots will probably try to raise prices to offset the loses.
Posted on 3/17/15 at 10:14 am to TigerMyth36
Probably raise Internet only prices. They know you still need them for that.
Posted on 3/17/15 at 10:34 am to brass2mouth
quote:they've been gaming customers ever since the "double the speed for free!" promotion last year. essentially what they did was get rid of the 25mbps tier, made it 50, kept the price the same for awhile, but now it's jumping up.
Probably raise Internet only prices. They know you still need them for that.
now cox no longer offers anything between the 5mbps (bare minimum for streaming) and the 50mbps (way more than most people need) internet plans. 25mbps or even a little less would be ideal for most streamers.
Posted on 3/17/15 at 10:36 am to link
quote:
25mbps or even a little less would be ideal for most streamers.
Earlier this year the FCC set 25mbps as the minimum speed to be considered broadband. Not sure how that will affect tiers going forward.
Posted on 3/17/15 at 11:19 am to MamouTiger65
quote:
Earlier this year the FCC set 25mbps as the minimum speed to be considered broadband. Not sure how that will affect tiers going forward.
I assume they will just raise the minimum internet tier price...and probably all of the others just because they love us.
Posted on 3/17/15 at 1:04 pm to TigerMyth36
You think Cox has been placing caps on Data Plans and not enforcing them just because they want you to know how much data you are using?
Expect to get hit for internet fees plus overage fees in the future.
Expect to get hit for internet fees plus overage fees in the future.
Posted on 3/17/15 at 3:19 pm to TigerMyth36
The only way for them to cut prices is to allow a truly a-la-cart option. Once they do that, the number of channels will significantly drop.
Will the average consumer keep 150 channels for $30 and say, well it's only 20 cents for this channel, lets keep it. Or will they say, I only watch 10 channels, here's my $2.
Personally, the sports channels dictate my satellite package. If I could get all of the sports channels and a handful of others, I would spend a lot less per month.
Will the average consumer keep 150 channels for $30 and say, well it's only 20 cents for this channel, lets keep it. Or will they say, I only watch 10 channels, here's my $2.
Personally, the sports channels dictate my satellite package. If I could get all of the sports channels and a handful of others, I would spend a lot less per month.
Posted on 3/17/15 at 4:46 pm to CubsFanBudMan
quote:You would probably end up spending more. Think about this:
Personally, the sports channels dictate my satellite package. If I could get all of the sports channels and a handful of others, I would spend a lot less per month.
ESPN charges cable companies about $6 per month per subscriber. The next highest channel is TNT at about $1.50 per month, and the rest fade off quickly after that. ESPN2 is in the top 10 most expensive, the NFL Network is like #4, and Fox Sports 1 is in the top 10. So the bulk of your expanded cable fee goes to the sports channels already. If they move to a truly a la carte option, the first thing a lot of people are going to do is drop all the sports channels (there are a lot more non-sports fans than you realize) to save money, forcing ESPN to increase their already sky-high fees to maintain their revenue since their subscriber base will fall off hard.
The bundling of channels shifts costs around so that all of the non-sports fans currently subsidize your sports channels. That's why any package that includes all the sports channels also includes TNT, TBS, USA, FX, A&E, etc... Who's going to pay $30 for a handful of sports channels when you can pay $35 for 100+ channels? So we have 10 million people paying $350million a month split between all the channels (and about $300million of that is for the sports channels and $50million for the rest in total). Let's go a la carte and say 5 million people decide to drop all their sports channels. Those sports channels still need their $300million, except now it's only split 5 million ways. The sports fans' bills shoot up from $35 to $65. That's a bit high, so they in turn decide to drop all those channels they don't watch, and their bills drop from $65 down to $60. So now all those entertainment channels have lost half their subscribers, and they need to double their rates. Now that $50million gets split only 5 million ways, too, so those people are paying $10/month. The average bill is still $35, except the sports fans who used to beg for a la carte pricing because they don't watch all those 100 bullshite channels are now paying nearly double for only a handful of channels.
Posted on 3/17/15 at 5:10 pm to TigerMyth36
Yes
and thats why they are trying to do 2 year contracts and offering 6 month incentives for initial sign ups.
and thats why they are trying to do 2 year contracts and offering 6 month incentives for initial sign ups.
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