Re: Comcast takeover of Time Warner Looms
My experience is that while prices for cable Internet have risen, they have not risen at anything close to rates of increase in cable television programming. I can think of two reasons for this. For starters, the content creators are constantly raising their prices and the cable companies pass those price increases on to their customers. Cable companies do not deal with increases in content pricing in their ISP businesses.
I believe a second reason why cable television programming increases in price so quickly is because it's so much easier for the cable company to obfuscate the actual price of the product through bundling. Without a la carte pricing, it's easy to convince users that they're getting the same value for their increased monthly bills since they now have access to 100 channels instead of 30 channels. Nevermind that most of those channels aren't worth watching and that advertisements are shown on most of those channels. With the ISP business, it's rather difficult to bundle things because you're really only selling a data connection.
The cable companies are trying their darnedest to hornswoggle people, though, with the various tiers of speed and deceptive introductory pricing. Go to the web site of you telephone company or cable company and try to find out what the real monthly cost of Internet service is sans special introductory rates. If you're able to figure out the pricing within ten minutes, I'd be amazed.
Originally posted by GRG55
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I believe a second reason why cable television programming increases in price so quickly is because it's so much easier for the cable company to obfuscate the actual price of the product through bundling. Without a la carte pricing, it's easy to convince users that they're getting the same value for their increased monthly bills since they now have access to 100 channels instead of 30 channels. Nevermind that most of those channels aren't worth watching and that advertisements are shown on most of those channels. With the ISP business, it's rather difficult to bundle things because you're really only selling a data connection.
The cable companies are trying their darnedest to hornswoggle people, though, with the various tiers of speed and deceptive introductory pricing. Go to the web site of you telephone company or cable company and try to find out what the real monthly cost of Internet service is sans special introductory rates. If you're able to figure out the pricing within ten minutes, I'd be amazed.
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