[mythtv-users] All clear QAMs gone in Portland, OR

Joseph Fry joe at thefrys.com
Mon Nov 4 17:57:58 UTC 2013


>> > I think we are going to have to agree to disagree that bundling
>> > is a positive.  Bundling saves money only in imperfectly competitive
>> > markets.
>>
>> One more attempt, then I'll stop.
>>
>> Consider a market with two channels and two subscribers.  Each channel
>> needs $10 to be profitable.
>>
>> Customer A values the channels at $3 and $8, while customer B values
>> them at $8 and $3 respectively.  If bundled in a $10 package, both
>> customers will buy the bundle and receive services they value above
>> the cost of those services.  If unbundled and priced at $5/each, each
>> customer will only purchase only one channel, neither of which will be
>> profitable and both will fail.  It's lose-lose-lose as the channel
>
>     Not quite. Many people will buy many different channels. It's a large
> market and there's plenty of room for different options. Not every option
> may survive but that's just basic capitalism.
>
>     Crap will just have to survive on it's own merits which is the expected
> norm for just about anything else.
>
> [deletia]
>
>     TV producers will have to follow the same "rules" as everyone else.
>
>     Such a tragedy...

Ala-Carte doesn't mean that there won't still be bundles, or
incentives to take channels you wouldn't typically buy.  Go to a fast
food restaurant and look at their menu... everything is ala-carte, but
to save a little bit you order a 'meal'.  Most people take the 'meal'
option.

Sure most households often only really need one news channel... but
for 50% more they will toss in a second, or for 100% more you can get
the news bundle and have 4 news channels for the cost of 2.

Or they will offer incentives.  Order 10 channels and receive a 10%
discount.  Order 20 for a 20% discount.  Order 100, and you only pay
1/2 the price of every channel ordered.

Obviously on top of the channel fees, would be the carrier charge.  If
this is $20/mo... and your most watched 10 channels add $20... your at
$40.  $10 more you can get 20 channels.. most people will pay the
extra $10 just to have a little more variety available, it's only 20%
more; without the carrier charge in there, it feels much more
expensive to add more channels.

One other thing to consider... by going ala-carte, the network can
charge more for it's advertising.  Why?  Because people will have
fewer channels, and thus those that subscribe to that particular
channel will be far more likely to be watching at any given time.
Additionally, the advertisers can be better assured of a match to
their target audience.

Right now in my house we have 4 people 8yo male, 15yo female and a 30
something couple.  At a minimum we would subscribe to 10 channels to
cover our routine viewing... however when we watch live tv, it
typically isn't one of our 10 core channels... often the tv will sit
on HGTV, or History, or something like that all day long.  Having
those channels, which we probably wouldn't pay for, actually cuts into
the advertising revenue of our 10 core channels.


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