Friday, April 01, 2005

How could one hot dog be more expensive than 2?

Well it is and it only happens in U.S.A. At least that is what the FCC said when it was asked to study and report about requiring cable companies to provide "A La Carte" option to the consumers. Here is the WashingtonPost article. Excerpts:

..However, the study found, most households regularly watch an average of 17 channels, including traditional broadcast staples such as ABC, CBS, NBC and Fox. Under the a la carte plan studied, consumers would see their monthly bills rise between 14 and 30 percent if they purchased 17 channels, the report said...

So 17 channels cost more than 100 channels that I pay for? I watch at most 10 channels and it is frigging waste of my money to pay $40+/mo and get 100+ channels just because the the lower plan does not have all I want.

You would think that free market would provide consumers with more choices but in reality, it is the other way around. When market matures and is dominated by the big players, the choices become fewer and prices become predatory.

Note: This is a bit of old news but I have been pondering about this news for a while!!

1 comment:

Anonymous said...

According to things I have read, ESPN (i.e. ESPN charges $2/month per customer) and the like cost the most for cable and satellite operators per customer. I can say without a doubt that I never watch any sports and would opt not to get them if given a choice.

The problem for the operator is that it costs them the same to carry these signals to their customers whether the customers want them or not.