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

[Joseph Fry]

>> Ala-Carte doesn't mean that there won't still be bundles, or
>> incentives to take channels you wouldn't typically buy.
>
> This is more or less what I was alluding to with the phrase "flexible
> volume discounts" but this kind of flexibility is really complicated
> when you think about how you would actually implement it and explain
> it to average customers.  Does the carrier pay different fees to the
> channels depending on which bundle the user is in?  If so, why should
> a news channel effectively give a discount if the user will also
> subscribe to a competitor's channel?

Simple... the same way a retailer can sell competing products... they
mark them up.  They pay the content provider a flat rate per
subscriber then mark it up... then can reduce their markup in an
effort to entice their customers to purchase more.

Additionally, the content producers can offer wholesale discounts...
for example ESPN could offer a discount to the reseller (cable co) for
every subscriber that subscribes to multiple ESPN's which would allow
the cable co to package them at a reduced rate to the subscriber.

One thing you will begin to notice, is that using the classic
wholesale/retail model is that it offers tons of flexibility in
pricing.  Hell, HBO could offer direct coupons for new subscribers to
use with any carrier.

One other thing you notice is that it would open the door for low
budget content creators to get their foot in the door.  It makes room
for competition because now the cable company doesn't pay anything
until someone signs up for a channel... and then they make a mark up
on that.  Just like manufacturers work to get their products on store
shelves, and retailers make room for what sells... you could start
your own TV network and try and sell it to local cable co's all over
the country.