Are Cable Subscribers Subsidizing Internet-Only TV Viewers?
waderoush sends a tongue-in-cheek open letter to cable TV subscribers from somebody who has cut the cord in favor of streaming shows over the internet.
"Dear Cable TV Subscriber: I don't think I've ever told you how grateful I am. I haven't paid a cent for cable television since 2009. Yet I have on-demand access via the Internet to a growing cornucopia of great shows like Game of Thrones, Homeland, Mad Men, and Breaking Bad, at reasonable à la carte prices. And it's all because you continue to pay exorbitant and ever-increasing monthly fees for your premium cable bundle (around $80 per month, on average). After all, your money goes straight to the studios and networks that produce and distribute all the expensive first-run programming that I'm perfectly happy to watch later at heavily discounted prices. So in effect, you're subsidizing my own footloose, freeloading, cord-cutting TV habits. I don't know how to thank you!"
Is it possible to mod an entire Slashdot article as "Flamebait?"
For your security, this post has been encrypted with ROT-13, twice.
Thank you streaming subscriber for subsidizing my torrents. Sorry to sound like a snide dick, but once you got things rolling I decided, why not?
...just as soon as they're not the best internet provider in town.
It sounds like the OP is still paying for TV, just somewhat less than others who have access to many, many more shows. If you don't watch that much TV, you can save money buying just the shows you want to watch. If you want to see more than a few HBO series, though, it's cheaper to just subscribe to HBO. If you want to be able to easily channel surf and watch shows as soon as they're released, you probably need to pay a provider.
dom
Where are these reasonable prices the writer speaks of??? Unless he's talking about "free as in piracy"?
Afterall, it's cable subscribers that are recording the shows that get put on the torrent sites. Call it getting a ROI.
Laughter is the Spackle of the Soul.
The cable TV model is broken. You know what, TV isn't that important. Screw them.
It'll probably have to crash and burn until something reasonable emerges. We've had direct-to-DVD for awhile, and we're starting to see direct-to-streaming-services. There may come a time when big expensive TV shows can't be produced anymore, but that model is broken too. Screw them also.
I suspect that things will transition to something new, and the studios and networks and content providers that refused to evolve will die. And that's fine. And if TV devolved to public access, that'd be fine to. Sometime last century we were trained to believe that TV is essential. If the entire broadcast/cable TV system collapsed with nothing to take its place (which I think is unlikely) at very least, we'd find out that TV really isn't essential after all.
So yeah, the last of the "tv generation" is paying the exorbitant salaries and production costs for three-and-a-half men. Serves them right.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
All you have to do to say "thanks" is get hooked on some show, and then occasionally pay iTunes' high prices for early access to new episodes. That's all. Simple, really, isn't it?
PJRC: Electronic Projects, 8051 Microcontroller Tools
I admittedly only skimmed the article. But where are the "reasonable" a la carte prices?
Both Amazon & iTunes charge $2.99 ($3.99 for HD) per episode for "Game of Thrones" S1. (Yes, a bit less per ep if you buy an entire season, but that doesn't really count as a la carte anymore, does it?)
I would gladly pay at least the same, maybe even slightly more, than I pay now for cable, to be able to watch everything commercial free/when I want without having to Tivo them.. But I'd pay a LOT more than cable, if you use the current prices of every single individual show.
You obviously haven't taken a look at Comcast's balance sheet if you think that $80/month is going to the studios.
HBO just announced a deal with Google Play to make all their series available.
by Mike Buddha -- Someday the mountain might get him, but the law never will.
This is an incredibly strange point to try to make when an ENORMOUS amount of people are paying the CABLE company for their basic Internet.
You obviously haven't taken a look at Comcast's balance sheet if you think that $80/month is going to the studios.
I heard a stat that cable companies pay $6 per month for ESPN/ESPN2. That's just two channels. Most channels are not that expensive, but if you have 100 channels....it is not hard to see how you're going to get a lot of that money going to content providers.
Other note I would make is that it is not exactly new to have "dry" cable internet. There are millions out there with cable internet and no TV -- and the cable companies do it willingly; I don't think they would do it if it really caused significant price pressure on the TV side of the house.
I don't know if I qualify as a cord cutter: cable internet is cheaper if you get it bundled with TV service where I am so I got the bare minimum tv service with internet. My cable box (can't get TV without their box) hasn't even been connected is nearly a year (set it up in case visitors were insistent). I calculated out the tv portion to be about $10 / month.
I use my xbox for comcast video on demand service which thanks to a recent update now provides an HD option. So to me comcast on demand is just another streaming service for the the channels I pay for (boradcast+cspan) as well as the channels I don't (almost all the basic cable ones like BBCA and comedy central) as well as HD quality which I also didn't sign up for/pay for.
So I guess I'm the one really being subsidized.
"UNIX is very simple, it just needs a genius to understand its simplicity." -Dennis Ritchie
Where!?! I'll move! (And I'm only half-kidding.) Right now, to watch GoT when it airs, I'd have to subscribe to my local (monopoly) cable provider at their full rate (or agree to a contract for 2 years to get the service I only want 4 months out of the year)
There is no such thing as a pay TV monopoly. You can watch GoT as it airs on Dish or DirecTV. Just saying...the fact that one company owns the cable franchise in a given town is not the reason that prices for pay tv are exorbitant.
You allude to satellite in your post (Ie. the 2 year contract bit) but I just don't see what your point is.
Cable subscribers are subsidizing sports.
Comcast owns sports teams. The teams ask ridiculous amounts of money for broadcast rights. Comcast passes the cost on to their customers.
And then their's ESPN....
I often wonder what cable would cost if I didn't have to subsidize the sports franchises.
The same goes for my local taxes.
Imagine if the sports teams had to pay for their own stadiums?
And I haven't looked back.
I've long since found that the regular networks you'd watch the show on will actually frequently stream many of their most popular shows right on their own website - one usually only has to wait until the day after it has aired to watch it online.
Okay, so if I do things this way, I'm stuck in their online streaming application (invariably flash-based for the desktop, or else a native app for mobile viewing), and I'll still have to deal with commercials like I would over the air... but in the end, I'm still not shelling out any money for cable.
File under 'M' for 'Manic ranting'
And so should some other people.
Laughter is the Spackle of the Soul.
I would rather watch Game of Drones
Don't try to out wierd me, three-eyes. I get stranger things than you, free with my breakfast cereal. --Zaphod Beeblebr
that Cable TV companies wont be jerked around
recently my cable provider had Turner Networks cut them off of several channels because my cable provider refused to accept a 50% increase of charges for access, so my cable provider has several blank channels where Turner Network channels once occupied, things like CNN & Headline News, TNT, Turner Classic Movies, Cartoon Network, (Turner's programming), a few empty spots once occupied by Turner's channels already been filled with other programming,
the point i am trying to make is by allowing streaming video content on cable internet shows providers like CNN that they are not the only method of content distribution (competition)
Politics is Treachery, Religion is Brainwashing
Ponies!!!!
Awesome!!!!
If I were God, wouldn't I protect my churches from acts of me?
Yes, all of season 2 of game of thrones. If you want season 1 or 3 (or both,) you're out of luck.
Sorry but that's the most broken release I've ever seen. I could see maybe not the latest season if they wanted that sense of exclusivity, but why on earth would they omit the first season? Game of Thrones is a highly contextual show, you can't just jump right into season 2 and understand shit about what's going on.
Careful with names containing L slashdot.org/~AiphaWolf_HK slashdot.org/~AlphaWoif_HK slashdot.org/~AiphaWoif_HK
as the other guy pointed out, Google Play Introduces HBO A La Carte Option
...
If the cable companies or satellite companies offered service without commercials (and a la carte) I'd sign back up in a heartbeat.
I'm not paying for commercials ever again. Seriously.
_ _ _ Go for the eyes Boo! GO FOR THE EYES!
Most of what I watch is free and legal. In theory, it is advertiser supported, since there are commercials if I watch shows in the evening. Yet if I watch late at night, I rarely even see a commercial.
In my mind, that doesn't make sense. Advertising is a way to generate revenue, so forgoing advertising late at night seems like a lost opportunity. It is not as though advertising is inherently bad either. I am perfectly fine with advertising in moderation (i.e. less than half of what is on broadcast TV) and if it reflects the content rather than the consumer (i.e. I don't like tracking). To the unnamed broadcaster who is streaming the unnamed shows to me: you are welcome to generate some revenue from my viewing habits. Be reasonable about it so that you don't alienate me in the same way that over the air broadcast TV or cable TV channels have alienated me, but I do respect your right to earn money for the services rendered.
I do pay for one fee based streaming service. Their model doesn't make sense either. Don't get me wrong, I appreciate the opportunity to watch series and movies for a flat fee. I appreciate the ability to do so regardless of how much I watch. Most of all, I appreciate that I can do so without advertising. Yet all of that appreciation reflects lost opportunities for the service provider. Now that doesn't mean that I'm willing to hand over huge globs of money and put up with copious amounts of advertising. That is what drove me away from broadcast and cable TV in the first place. But I do respect your right to earn reasonable amounts of money for the services provided.
Don't get me wrong. I don't want to be gouged. When it comes to television, I have demonstrated that. I have never subscribed to cable or satellite TV. I don't want to be abused either. Again, I have demonstrated that since I have rarely watched over-the-air broadcasts. Yet there is a world of difference between not wanting to be gouged and not wanting to have one's time wasted (via advertising) and being willing to provide reasonable compensation for services provided. I am willing to provide reasonable compensation, according to my definition. I am also willing to go without if it isn't reasonable by my definition. This is TV after all. I can do without it. That's a bit unlike the Internet.
When HBO refuses to sell the GoT matroska files, implying that people who want DRM-free media should pirate instead, the pirates don't call that "subsidy." The word is "stupidity." HTH.
"Believe me!" -- Donald Trump
That is how I am doing it now. I record OTA to my DVR and computer. Internet for the rest.
Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
I'm looking at Season 1 on the Play Store right now.
What's the anime site?
What controls the prices of services like Netflix is piracy, not cable TV subscribers. If there was no piracy Netflix would be a lot more expensive and so would be cable TV subscriptions.
How many of the congresscritters in the 105th Congress got primaried for passing the No Electronic Theft Act, Copyright Term Extension Act, or Digital Millennium Copyright Act?
That's called an antenna. Say it with me. "An-TEN-na." It magically sucks network TV signals right out of the air. For everything else, we have Netflix and Hulu. And you don't. Get off my lawn.
With antenna + Netflix + Hulu Plus, you still miss out on Monday Night Football. And without cable, you may end up stuck on slow DSL.
You could try waiting until the series has aired in its entirety, after which point seasons should start entering the DVD bargain bin.
There are millions out there with cable internet and no TV -- and the cable companies do it willingly; I don't think they would do it if it really caused significant price pressure on the TV side of the house.
Anonymous Coward reports that some cable companies charge more for dry Internet than for Internet + TV.
So what do you do when the network's own website confronts you with "Please log in with the username and password provided by your cable or satellite provider"?
I get my cable for free. I have a P-Key, a terminator tool, and a 9/16" 30 inchpound torque wrench. I don't pay a fucking dime for my cable TV.
Get your free Dropbox account with 2 GB Free storage!
Content providers have to pay to get on networks too, since they get all the advertising profits. Not all do, some get paid, but cable companies get more money from companies paying to get onto the network than they have to pay to others. This open letter would make sense if it was completely true, but the ones paying are the people buying the products that get advertised and the ones watching the shows via cable, not the cable companies.
I was promised a flying car. Where is my flying car?
id like to know that as well
who prays for Satan? Who in 18 centuries has had the humanity to pray for the 1 sinner that needed it most? ~Mark Twain
I dropped TV services when the digital OTA change took place. I get about 30 programs, although some are duplicate. I couldn't take paying for bringing all that paid programming into my house. Besides the shopping channels, too much is just 1/2 hour commercials. I especially didn't like paying such a huge amount for ESPN, NESN, and YES.
Have you looked at what your internet service includes? All cable/DSL/FIOS/uVerse services include ESPN3, Music Choice and Nick Jr. Boost for "Free!". Nothing is free. You're paying for TV, even if you don't use it.
My Cox 5 Mbps internet only is going up 14% next month to $49. They know they're losing TV and phone customers. There's nothing else available except satellite with low caps. Even if I could get DSL in my area, AT&T stays with a couple dollars of the cable rate. I use an old Ooma, so phone is still free, but I need internet.
Ah but they're "Hi-Def" half hour commercials ;-)
If you have cable internet, you're already paying the SAME folks who bring you your TV. You're not paying the studios, but the ISP/TV content provider. How they get their money doesn't matter to them, as long as they can vacuum it out of your pockets...
If you think modern "push" media has a future, I have bridge to sell you. It still has the advantage only in purely linear storytelling. Move to any newer form of multipath stories (aka "video games"), or any form of on-demand stories (aka "books"), and you can consider the anomaly of the past 50 years of broadcast TV as... Well, as an anomaly.
Or my favorite: interactive fiction (aka Slashdot)
When our name is on the back of your car, we're behind you all the way!
So he kinda pissed me off, but I'm really more angry at cable than I am at Wade. The exchange:
Hey Wade,
Just read the article on how I am subsidizing your access to shows. Well done. Just the right amount of snide "I'm smarter than you" rhetoric. You must be really proud of yourself to have "discovered" and taken advantage of streaming video. With an IQ like that, well, you are ALREADY great. Thanks for writing and letting some of it rub off us peons.
Now I'm going to tell you WHY I am subsidizing you. I mean, I have the Internet, obviously. I even have a "network capable" TV with it's own IP address. And my DVD player has a gigabyte USB device on it expressly for watching streaming video. It uses something called OrbCaster. Pretty cool. I'm right on the brink of firing Comcast, so why don't I?
Because, Wade, my Internet connection is limited to T-1 download speeds. That's 1.544Mbps on a DSL connection furnished by Centurylink (The former Quest). And you know what? It's not fast enough to stream much of anything. Even a YouTube video jerks along slowly. But an hour-long TV program? Not a chance, Wade. I'd rather watch the damn commercials than endure the gaps while it is "buffering." Now I've asked for a higher speed. I live in an affluent community which would lap up higher speeds faster than a new model Lexus. I've been on the list quite a long time now. When they "upgrade services" for their DSL lines I'll be the first to know.
I've been waiting about 15 years so far. Before that I tried satellite Internet. Every time it rained, the Internet went out. And I live near Seattle, so you know the Internet was down more than it was up.
I do have an alternative. There is one provider that will give me about 6Mbps for about the same price I am now paying Centurylink. That provider is
Comcast.
See the problem now, Wade? I knew you would. And I don't even watch sports.
His answer:
Thanks for your thoughts about my article. The snide act was intended to get readers riled up; I had hoped it would be recognized as satire. I wasn't trying to tell 100 million cable subscribers that they're stupid. I was trying to rile them up about being forced to overpay.
That said, quite a few readers have been reading the piece as a direct insult, so it sounds like I didn't strike the tone I'd wanted.
I totally understand that there are lots of people in your situation who don't have the broadband speeds needed to make extensive Internet video viewing practical, and I'm all in favor of policies to improve broadband delivery around the country. But given that the article was a bit of a comedy sketch, my feeling as I was writing was that it would have weakened the effect if I'd insert a bunch of caveats like that.
Anyway, thanks, and I totally get your point that the alternative to cable that I was suggesting is only available to people lucky enough to have fast broadband.
Wade
How about a moderation of -1 pedantic.
You're incorrect.
Cable companies have to negotiate retransmit fees on *everything*. I just wrote a comment about the rates cable companies have to pay locals in reference to that streaming service that has all the networks angry.
Rates are negotiated on a "per-subscriber" basis. That means your cable company is paying a fee, per-person, to carry the channel. No, I'm not thinking of premium networks; which is I'm sure the thought in your head right now. I'm talking *every channel they are legally not required to carry*. The list of channels they are *legally* required to carry is actually quite small; PGE (Public, Government, Educational) channels and local channels that have enacted the "must-carry" clause.
Everything else, though; has to be negotiated. Your cable system has to pay your local network affiliates/channels to be carried on their system. All of your "basic" cable channels; they also have a transmission agreement. Premium channels even have a retransmission agreement.
Basic cable channels are funded by a mix of advertisements and these transmission agreements; thinking that advertisers solely fund a channel anymore is ridiculous. For one thing; advertisers don't want to pay big rates for national coverage because there's no guarantee their ads will be seen. As part of a retransmission agreement; a cable operator is allowed to insert their own advertisements over top of whatever is being broadcast. This includes local channels too. You might be thinking there's some FCC requirement that makes cable operators provide locals; and you'd be right. Except it's essentially now boiled down to two basic requirements: cable providers have to offer a *very basic* package of just local channels; and they must carry a channel that's invoked the "must-carry" rule. This was created because small independent broadcasters were often ignored by cable providers; refusing to carry them so they could offer more non-local programming. The 1992 act made rules that allowed small stations to invoke must-carry status, to force the cable channel to give them bandwidth. It also set up rules for banning "out-of-market" channels. In reality; it's a bit more complex than that; but it gave local broadcasters the option of requiring a retransmission consent; or invoking must-carry. Of course; if your cable provider agrees to pay retransmission for a local broadcaster; they too, get ads inserted over top. The most famous was last year during an NFL playoff game when Comcast interrupted the end of a play to advertise their recent promotion.
Advertisers are the ones getting the shaft, so it's no surprise they won't pay big bucks.
The fact is; nothing is solely funded by advertisers when it comes to cable. You're paying for all the channels in your package as well as paying to see local channels. Cable companies have their own advertising they place on top of a broadcasters adverts. Prime examples are when a provider drops a local affilate because a retransmission agreement can't be reached; or you lose a bunch of "basic" channels because of a agreement not being made. If advertisers were the only ones solely funding programming; why would they care what they get from a cable company? Why do you think it sometimes takes a while for a new cable channel to creep up on your provider? If it was up to the cable companies; they'd add *any* channel they thought would add value to their service. However, they have to come to an agreement on how much they're going to pay for the right to carry that channel; because the advertisers don't fund the channel 100%. Some channels; like C-Span; are solely funded from retransmission agreements.
"What are you going to do when the TV providers 'win' and you will have to verify subscription to a pay-service before you can stream anything?"
Hulu has already started this trend; I'm sure once the technology exists to a "universal" degree; all the other providers will have to fall in line.
Cable TV: one way or another; we're going to get your money; even if you don't subscribe to us.
So what do you do when the network's own website confronts you with "Please log in
They don't.
HBO Go does, and I'm told even some of the basic cable networks do as well.
Why would they?
To encourage people to subscribe to a participating cable or satellite TV provider that pays a royalty per subscriber for the network's bundle of channels.
I'm not sure what his point is. He claims people pay a premium for sports and lush serial dramas, because people wouldn't pay for them if the cable companies didn't provide them... duh. I get cable mainly because I want to watch sports. If they didn't offer sports, I wouldn't be paying for the service.
He claims he gets on demand access to Game of Thrones. Where does he do that legally? They only place I see where you legally get Game of Thrones is the DVDs, not on demand and not cheap.
He also mentions the money goes straight to the studios and networks. And then talks about how the cable companies charge high fees for some stuff so they can bundle other stuff. So not all of the money goes straight to the studios.
Everyone has been paying exhorbitant fees $$$$$$$$ to subsidize those who watch sports.
Cable TV would be much more economical if we us nerds didn't have to pay for sports.
I started with cable internet at $40 a month. They went to raise it to like $68. Just for internet. Comcast started charging a $18 fee for not have cable TV, granted the basic cable was $21/month.
It got to the point where for another $20 on a promotion I got cable TV+HBO (for Game of Thrones).
Seriously, I don't even get BBC. Since Doctor Who went big, they moved that up to the upper echelons of plans. I want 5 channels. That's about it.