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People buying the cable companies' party line »
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yock
TFTC
Premium
join:2000-11-21
Fairfield, OH


1 edit
reply to DonLibes
Re: Personal Responsibility?

Digital Cable already provides for methods to password protect channels and ratings. V-Chip technology does the same for ratings systems on standard cable products.

I don't understand the logic in this. It's like people don't believe that the laws of capitalism apply to cable television just because it is a service and not a commodity. Look at the food industry, specifically fast food. Ever wonder why it's cheaper to buy the combo meal rather than the same items a la carte? Selling your meal as a package allows for some discount, as they know the next person will also be buying a package, and the next person and the next and so on.

Selling a la carte requires that they make profit off of every single item they sell.

Carry this over to cable television. If providers were required to sell you individual channels, they would be required to price each channel based on it's advertisement revenue, cost to carry that channel, and estimated subscriber base. Popular cable channels like ESPN and CNN would most certainly be priced outrageously, because they know that people will pay whatever it takes to view such channels, in much the same way that an upscale restaurant can change $30 for a steak.

Don't be stupid. Think about what a la carte pricing does for other industries before you all start touting it as the Holy Grail of cable television billing.

DonLibes
Premium,ExMod 2001
join:2003-01-19

said by yock See Profile:
Look at the food industry, specifically fast food. Ever wonder why it's cheaper to buy the combo meal rather than the same items a la carte? Selling your meal as a package allows for some discount, as they know the next person will also be buying a package, and the next person and the next and so on.
Your analogy is flawed. You're assuming people WANT everything in the combo meal. That isn't always true. For example, for people who don't want the fries, it's cheaper to buy the burger and soda separately then it is to buy the combo meal.

When I take my family to McD's for example, we never get combo meals - mathematically, it just doesn't make sense. Same thing with TV packages.

Now it's true that a lot of people will eat fries if AND ONLY IF they get them at a bargain. But not everybody will. And it is these latter people that don't want to pay combo prices. Similarly, not everybody wants to pay combo prices for TV. That is the accurate analogy you should be using.
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