[opendtv] Re: 247wallst.com: Pay TV Shows Troubling Subscriber Trends
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 17 Sep 2014 23:52:55 +0000
Craig Birkmaier wrote:
> Cable rates have increased at 2-3 times the rate of inflation since the
> 1980's. This brought about the Cable Act of 1992, ...
> Your public transportation analogy is irrelevant.
Think, Craig. People are fed up with high cable rates. People are dropping
their subscriptions. Cable increases their rates further to keep up their
profit margins. More people drop their subscriptions. Cable increase their
rates even more to compensate. More people drop their subscriptions.
Do you really not get this?
> The congloms create positive feedback by adding services ...
You misunderstand and confuse the term.
Positive feedback means that you do to the input what the output is doing. So
for example, in an amplifier, if the output is heading downwards, you feed that
downward signal back to the input signal, i.e. you reduce the input signal.
This causes a further reduction in the output signal.
Same for an increase in the amp's input. You take the increasing output of the
amp, and feed that increase to the input. Which causes the output to increase
even more.
Positive feedback is destabilizing. Negative feedback, instead, stabilizes the
amp. If the output drops, you feed the opposite of that drop back into the
input, which tends to increase the output.
Cable companies increasing their rates causes people to drop subscriptions. If
they increase rates even more, they exacerbate that effect. To counter the
exodus, cable would have to reduce their rates, offer other bundling options,
or what have you.
Bert
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