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The Problem With Cable Is Television

Saul Hansell writes in the NY Times about how various services offered by cable companies affect their spending and their revenue. As it turns out, a lot of the cost increases and investment needs are coming from television and video services rather than internet connectivity. The scramble for high-def and rising licensing fees for programming seem to be the biggest headaches for Comcast and Time Warner right now. Quoting: "By all accounts, Web video is not currently having any effect on the businesses of the cable companies. Market share is moving among cable, satellite and telephone companies, but the overall number of people subscribing to some sort of pay TV service is rising. (The government's switch to digital over-the-air broadcasts is providing a small stimulus to cable companies.) However, if you remember, it took several years before music labels started to feel any pain from downloads. As the sour economy and the Web start putting more pressure on the cable companies, they may be forced to consider breaking up the big bundles of channels they now insist that consumers buy and instead offer individual channels or smaller groups of channels on an à la carte basis."

10 of 334 comments (clear)

  1. If they broke up the channels a la carte by Ralph+Spoilsport · · Score: 4, Interesting
    I would actually pay for cable.

    What I want:

    HBO
    History Channel
    MSNBC
    CNN
    CBC
    BBC
    Comedy Central
    Showtime
    Science Channel
    PBS
    Animal Planet (for my daughter)
    Cartoon Network (for my daughter)
    VH1 (for the wife)

    That's it. I don't watch and don't care for the rest of it, because it's mindless brain drool, and a lot of what is on the stations I listed is also mindless brain drool, just less of it than elsewhere (like Oxygen, MTV, SPIKE, ABC/CBS/NBC, etc.). That's 13 channels I would watch, and watch at least once a week. I would pay a dollar a month for each. That would give them $13 a month they're not getting now. I would not pay more than $1 month, because frankly, TV is a big time suck and mind poison. but that's what I would do, and I am certain there are many people who agree with me.

    I don't want the Food Channel. I don't want ESPN. I don't want "Desperate Housewives" or "American Idol". It's crap. I don't want it in my house.

    But I am willing to pay for the good stuff, if I can be certain I will get GOOD STUFF.

    RS

    --
    Shoes for Industry. Shoes for the Dead.
  2. Re:Not the programming by Narpak · · Score: 5, Interesting

    I guess the problem is that majority of programming suck, or at least that the broad scope of programs available through a cable package is so diverse that many only enjoy a small handful while the rest that falls outside the individual field of interest is uninteresting.

    The tactic employed is to bundle "high quality" channels with "low quality" channels to ensure that if you want to buy the thing you are interesting you also have to buy a lot of crap that you don't are about. Selling individual channels, or smaller bundles, would mean you could probably ensure that what channels you get are those you actually want to watch; but it would also mean that a lot of marginal shows and channels would go out of business.

    Of course personally I believe that this is pretty much inevitable and that shows and programming enjoyed by a smaller minority will have to find other ways to reach their targeted audience (like say the Internet). And it probably wont stop there either. In fact I would go so far as to say that over the next two decades the traditional way (in so far as something as new as cable can be said to have a tradition) of watching TV will change in many different ways. Using myself as an example I don't watch TV. Not because there aren't shows I would be interested in, but because I simply can not tailor my day around a programming schedule (nor am I inclined to buy a cable package and a Tivo like device). For me the only option when it comes to watching shows is getting them online (and I am sad to say the options for doing that legal is severely limited in my Country); so for the most part I just have to do without until reality catches up with technology and gives me options suited to my lifestyle.

  3. DTV and cable by quickOnTheUptake · · Score: 3, Interesting

    Possibly OT, but when I installed a little outdoor DTV antenna the other day, I was amazed by how many stations I got. I'm wondering: as stations start taking advantage of the extra stations (you know, running more programs rather than running HD and SD stations with the same programming plus a weather channel) will large numbers of casual TV users decide the monthly cable fee isn't worth it?

    --
    Mod points: Guaranteed to remove your sense of humor.
    Side effects may include gullibility and temporary retardation
  4. television channels are so last century by viralMeme · · Score: 4, Interesting

    They just don't get it, we don't want to subscribe to a hundred channels. What we do want is watch what we want when we want and not have to subscribe to half a dozen services on top of our ISP fees.

    If the telecoms want to make real money out of IPTV they need to stop subscribing to rights to channels and instead buy up their own material and repackage it for their own subscribers, else all they are doing is relaying terrestrial TV to an audience that can already get on .. Television. I mean, for me, why pay extra to watch television on the Internet ?

    If may come as a surprise to the telecoms that IPTV is a bandwidth hog, but not the rest of us. What they need to do is provide a high definition broadcast grid for live video, the rest to be provided in a peering arraignment to the local ISP switching center. The consumer then selects from a list of older tv progs and movies and they are delivered overnight to a DVR or set-top-box.

    You pay for what you watch when you watch. Latest movie, ok top dollar, old movie, $1:00 a time. You also pay for online game subscriptions, video telephone, research and reference like the Wolfram|Alpha project.

    Of course even 'passive viewing' is old century for the current wired generation, they're more into making and being in their own personal movie .. :) It depresses me as to all the innovators can see as to the future of the Internet, television and adverts. Back to the sixties I guess :)

    See also:

    Regular columnist Bill Thompson wants it all. And he wants it now.

  5. Re:Smaller Bundles by Bieeanda · · Score: 3, Interesting

    The reason we have the larger bundles is that advertising and programming on the more popular channels covers the deficits run by the less popular ones. Programming on Discovery, History or whatnot may be great, but it's the pap like MTV that brings in the lucrative advertising and eyeballs. Breaking the packages up just makes it easier for the stockholders to demand that under-performers get axed... and that's a category more likely to include the ones that we want to see, rather than the ones that the broader public do.

  6. The current business model cannot/won't hold up by surfingmarmot · · Score: 4, Interesting

    Of course this is a generalization, but in the main the paradox is that free content usually ends up not being worth paying for because quality producers won't make it for long leaving largely low cost/low quality content over the long run. Quality producers and distributors stick to channels where the business model provides a sufficient fee structure (ad revenue, subscribers fees, etc.) via channel control to provide them revenue and profit. But consumers will only pay for content they value--both in quality and speed. The problem right now is most US internet connections are mostly too slow to provide high quality and delivery speeds that will command cable TV-level fee structures for advertising and subscriber fees. The US is way behind the EU in this. So the cable companies and telcos have a huge investment in infrastructure ahead of them before they can profit in the general market. Which is why they want a tiered internet--to phase infrastructure in slowly and match costs and revenues better to stay profitable. Their greed early on has them no painted into a corner--but you can bet they are figuring out how to make to consumer fund their rescue.

  7. Re:Smaller Bundles by Narpak · · Score: 3, Interesting

    iTunes Norge have a severely limited selection of movies and series. In part because of the Norwegian Movie and Music industry, and in part because they refuse to follow Norwegian Law. Which is also why Apple/iTunes have threatened to boycott Norway several times. So iTunes is not a viable option since it does not provide what I want, and even if it did I couldn't be certain I would be able to access what I had purchased a few months, or years, down the line.

  8. Not the issue - not at all by earlymon · · Score: 3, Interesting

    Welcome, once again, to another episode of cable operators complaining about internet delivery and content bundles. All together now - (sorry, I'm very snarky today) - cry me a river.

    The real issue is that all of the current non-OTA TV delivery systems have bitten off much more than they can chew.

    So far as I know, NO ONE in the USA is offering HD content as advertised:
    http://en.wikipedia.org/wiki/HD_Lite
    http://www.highdefforum.com/directv-forum/29158-hd-lite-directv-picture-quality.html
    http://www.satelliteguys.us/dish-network-forum/51978-facts-about-hd-lite-e.html
    http://forums.joeuser.com/309174
    http://www.tvnewsday.com/articles/2009/04/22/daily.4/
    (I recognize that some of the above links seem to target satellite TV, but if you read through two things become apparent: users are equally slamming cable, and neither satellite nor cable has their arms around a solution.)

    Like it or not, the #1 driver for a cable subscription is TV - and they already cannot deliver on that.

    I'm not a big sports fan (but so what if I am or not?), but I can reliably report this: during a hockey and a basketball game, I DVR'd OTA and my so-called high-def service of same channels. Hockey results: OTA clear, puck actually disappeared with paid service. Round-ball results: OTA clear, paid service unable to distinguish if foot over line or ref was blind during slo-mo playback.

    And here's some technical anecdotes:
    1. Your channel package choice or size of bundle won't impact anything, it's backbone limited.
    2. When I upgraded to "HD" satellite, my house's RG-58 didn't cut it due to bandwidth limits on the RG-58. The '58 was ok for the short wall-to-TV pigtails, not otherwise.
    3. They can fiber this and cable that and MPEG-4 the other, but no one is supporting the infrastructure to get the job done.

    And a real big issue - once you've made the grade to premium cable or premium satellite, and you've replaced your TV - name your reasons, they're all valid: a) I want a new one, b) new TV standards and my set is getting old anyway, c) time to branch out and support my computer and Hulu, HTPC, et al, in the living room - you'll replace that TV with an HDTV and you'll go with the HD package from your for-pay provider (cable or satellite). The HDTV is an investment-grade purchase, just like your PC (any flavor), and the HD programming is too small an incremental price increase to pass up.

    Here's the invective we can now look forward to: if you're complaining about your TV quality, you'll be told the bandwidth suckers using torrents are to blame. If you're complaining about your internet service, you'll be told that the primary service is directed at TV quality. Either way, do not expect that the future holds a world where you're really going to get what you think you're paying for.

    Mark my words.

    (PS - No apologies to those not interested in HDTV, or TV - you're not the big market to these companies, and that's all I'm ragging on - I'm not dis'ing anyone's lifestyle or entertainment choices. HTH.)

    --
    Pathological kinda promises Path + Logical - but instead, you get stuck with pathetic.
  9. Re:Not the programming by Fujisawa+Sensei · · Score: 4, Interesting

    Cable set to the side. Forcing me to pay taxes and then using those taxes to benefit someone else is theft. Theft from me and my family. You think taxes are good, then defend taxes, don't dispute that they are theft though. If I stuck a gun in your face and demanded 20% of your money it would be armed robbery. When the government does it, it is called taxation. And I personally could not care any less than I do now, (zero), if Billy-Joe Bob gets anew heart or not. He could die before I walked across the road and pissed on him if that was all he needed. I also don't care if your mewling brats get an education or if your parents have to eat roadkill. Taking my money to benefit you and yours is fucking wrong,immoral and exactly what the founders of the USA were dead set against.

    Then pack the fuck up and leave. Nobody is stopping you.

    The United Arab Emirates have a 0% tax rate; perhaps you should consider immigrating there.

    --
    If someone is passing you on the right, you are an asshole for driving in the wrong lane.
  10. Re:Not the programming by IgnoramusMaximus · · Score: 5, Interesting

    If they had it their way, the only rights we would end up having were ones we could afford to buy and enforce as an individuals.

    Quite right. It is no coincidence that most of them have fantasies of societal collapse followed by a "Mad Max"-type future where "real men" and their shotguns get to rule the day.

    They never seem to get it that a "working" example of a "libertarian society" is ... Somalia. No functional central government to rain on the "real men's" parade there at all. Everyone there is free to conduct "free enterprise" any way they see fit. Curiously however, libertarian immigration to the Paradise in Mogadishu remains rather low.... perhaps not enough pamphlets at the weekly meetings at the temple of the Goddess Alyssa Zhinovievena?