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Unbundling Cable TV: Be Careful What You Wish For

Posted by samzenpus on from the a-buck-a-show dept.

schnell writes Consumers have long complained about the practice of "bundling" cable services and forcing customers to pay for channels they don't want — and an increasing number of "cord cutters" are voting with their wallets. But an article in the New York Times suggests that if cable companies are finally forced to unbundle their services it may actually result in higher prices and worse service. From the article: "there's another, more subjective dimension in which the rise of unbundled cable service may make us worse off. It's possible for a market to become more economically efficient while becoming less pleasant for consumers. For a prime example, head to your nearest airport."

2 of 448 comments (clear)

  1. Airline anaolgy is incorrect by gurps_npc · · Score: 5, Interesting
    The thing about airlines is that they unbundle things that almost everyone wants.

    Food, drinks, legroom, checked baggage.

    The thing about cable is that large majority of people don't want all the crap they force down our throat.

    For example there are romance centered channels, sports centered channels, reality show channels, cartoon centered channels, science centered channels and fake science centered channels (which USED to be real science centered channels).

    If you are a family with a wide array of interests than you might probably want all of that.

    But I have zero interest at all on the sports channels (total geek), fake science channel (TLC, I'm looking at you), reality show channels, etc.

    --
    excitingthingstodo.blogspot.com
  2. We have unbundled here. Prices went up. by Guspaz · · Score: 5, Interesting

    Cable (and IPTV/satellite) is unbundled where I live. Guess what happened? People ended up getting less channels, paying more per-channel, and at the end their monthly bill ended up about the same. Now the CRTC is likely going to force unbundled cable to be required nationwide, and I expect to see the same thing happen in all other provinces.

    Cable companies will set their prices so that their ARPU remains unaffected. The vast majority of people will save no money. A small number of people who pick an extremely limited number of channels might save some money.