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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: prosperous who wrote (42625)	11/11/2008 1:44:40 AM
From: energyplay	Respond to of 217713

For cable channels, much of their profit comes from bundles of premium channels. Basic cable rates have been pushed down, and "must have" channels like Disney and MTV have raised their fees to where they capture much of the revenue. The cable companies are still paying for many upgrades, and have to compete with the satellite networks, DSL from the phone company, and fiber to the home. They are also paying for smart set top boxes and video on demand. So if people give up a few premium channels, that might cut revenue 30%, but cut profit by 70 or 80%. If kids have to move in with their parents, or parents with kids, that cuts even more revenue. The satellite TV services are in a similar position, with considerable investment on demand set top boxes, but with considerably less investment in infrastructure, save puting up a new satellite every so often. ***************** So there is a 3 way competition : Cable vs. Satellite vs. (DSL or fiber) And the market is shrinking fast.