[opendtv] Re: Analysis: The Real Winner in the TV Wars
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 6 Dec 2004 10:11:40 -0500
Craig Birkmaier wrote:
> Why are the media conglomerates vertically integrating
> around content? Perhaps this line from the following
> story provides a clue...
>
> > Why are rates rising in an era when inflation is so
> > low? The cable and satellite industries are paying
> > dearly for programming, which accounts for about 50%
> > of their operating budgets.
This is silly. The simple answer is, "Rates are rising
because the cable and DBS companies can increase their
rates and people still pay." If people are willing to
pay, and the sale is not illegal, there's nothing to
stop the seller from increasing his price. And the price
by definition reflects the value placed on the product.
Duh.
> Consumers are the big losers, as they are forced to
> pay more and more for advertiser supported content.
Consumers are only the losers if they're coerced to pay.
They are not. There's no gun to anyone's head. This is
just entertainment, for heaven's sake.
Bert
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