Thursday, September 29, 2011

Cable Companies Consider Splitting Channels

As was suggested in class cable companies are considering splitting their channels and billing a la carte.

I think it will be interesting to see the "a la carte" menu. I think some people will be surprised to see the cost of some individual channels. As is mentioned in the article ESPN is one of the most expensive channels. The second and third order of effects of causing this to be billed a la carte may see more people attempting to watch ESPN as a online stream (ESPN3) I know this is not ESPN's intention I'm sure a large profit is being made by them in cable subscriptions.
Also, the article mentions that Discovery and Viacom producers of content may end up getting the short end of the stick in this type of arrangement as well as their channels are often bundled with other channels and may not get the same revenue in an a la carte market.
Interesting times to be in the cable business thinking about how to keep your product viable with streeming services.

http://money.msn.com/top-stocks/post.aspx?post=205417b6-537b-44f9-a883-8e37bfa8ab06&gt1=33002

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