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Cable Choice Myths

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Chris Ryder

on 7 October 2013

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Transcript of Cable Choice Myths

Cable Choice

Cable Choice
The Cable Industry is very concerned about something called...
Cable Choice
Myth 1
Cable bundling
keeps costs down
The current cable "bundling" system is a good SYSTEM
Myth 2
Unbundling cable will increase prices
The network board rooms have been silent when cable costs were rising dramatically over the last 10 years, easily outpacing inflation. This is especially outrageous for viewers on fixed incomes.  Yet, consumers continue to watch a small % of channels while subsidizing other channels they will never watch. Just this last year, cable subscribers in Los Angeles pay an extra $ per year for just two "special" channels for the Lakers and the Dodgers, whether the viewers watch it or not.
In the last decade, the cost of a cable subscription has grown faster than rate of inflation. Price increases have never been a concern when the cable networks were laughing all the way to the bank. Nobody said anything when prices continued to spiral upward.

The reality is that consumer prices would go down. Forced to actually compete for the consumer's dollar, networks would be forced to deliver a better product at a lower price.
History seems a perfect guide: When in the course of a free commercial market has competition resulted in higher, not lower, consumer prices? Answer: Never.

If pricing truly was a concern, why are the largest consumer organizations in the country ardently advocating Cable Choice? Both the Consumers Union, publisher of Consumer Reports magazine, and the Consumer Federation of America emphatically support Cable Choice as a means of helping the public by lowering cable bills.
Robert Iger (CEO of all Disney/ABC/ESPN properties) called the current pay TV network bundle “a really good bargain” for consumers. Iger believes that consumer are “getting a good deal from a $75 per-month pay TV package."

Good deal for who? Bundling may have some advantages, but why should Grandma Parker on a fixed income have to pay extra for ESPN, MTV, FX and hundreds of other channels when all she wants to watch is Hallmark and the History Channel. Remember when you had to purchase an entire album to get one song you liked. Yeh, that was a long time ago.

Do you have to purchase Playboy, Guns and Amo, PC Magazine and 20 magazines just so you can get Cat Fancy?
means you actually get to choose what you WANT to view and pay for
on cable TV .
Here are some of the MYTHS the Cable Industry has been
Instead of paying for 100's of channels bundled together that you will never watch, such as...
Click to play
Full transcript