Why is cable so expensive?

[acemcmac]

$92 a month before taxes and after promo periods for a fvcking cable internet connection and the most basic of basic cable that has more than 15 channels.

That's insane. Where are those cantenna blueprints?!?

Oh, and apparantly I can't get DSL even though the house I just bought is in the middle of a goddamn city

 

[mundane]

Because they can charge it. I'm in a similar situation; pay $53/month for 3 Mbps cable internet, and was informed that to get anything worthwhile I'd need to pay at least $90 per month. So instead I spend $18 on Netflix and use the provided bandwidth for BT TV Shows.

Edit: And it turns out they pipe in about 10 channels 'for free' on my cable internet coax line.

 

[MoPHo]

demand for cable internet is up, so they can increase the price?

 

[altonb1]

Originally posted by: MoPHo
demand for cable internet is up, so they can increase the price?

But shouldn't that also drive down prices? Demand may be up, but the capicity is (usually) not maxed. If they have the capacity to add subscribers, they should be able to lower the cost per subscriber and still make more money than the current pricing scheme.

 

[SarcasticDwarf]

And that is why I don't have TV service. The handful of channels I want (history, sci-fi, pbs, discovery) would cost about $40/month. Screw that.

 

[QED]

I can think of three possible reasons:

1) Because you are paying it, so i t obviously is worth it to you.

and

2) Because cable internet > DSL.

3) Because cable > satellite for multi-TV homes

 

[iwantanewcomputer]

cause you can't get dsl in your area duh.

 

[Queasy]

DirecTV FTW

 

[MoPHo]

Originally posted by: altonb1

Originally posted by: MoPHo
demand for cable internet is up, so they can increase the price?

But shouldn't that also drive down prices? Demand may be up, but the capicity is (usually) not maxed. If they have the capacity to add subscribers, they should be able to lower the cost per subscriber and still make more money than the current pricing scheme.

maybe they are the only one in that area? around my area the only one you can get reliable cable from is Time Warner. if they upped the price, we'd have to pay to keep cable internet.

 

[K1052]

Originally posted by: MathMan
I can think of three possible reasons:

1) Because you are paying it, so i t obviously is worth it to you.

and

2) Because cable internet > DSL.

3) Because cable > satellite for multi-TV homes

Indeed.

Even if I could go sat to get the bill down, I wouldn't. I'm not giving up my 8 meg down speed and nice selection of HD programming to save $40 a month.

You can have my cable modem when you pry it from my cold,lifeless hands......or maybe when FIOS is available here.

 

[PingSpike]

If I were running a monopoly, I would just charge more as well. I mean, when you have no competition you might as well maximize profits.

 

[0roo0roo]

netflix ftw

 

[Vic]

Legal coercive monopolies. It's not just that they have no competition, it's that the government prohibits any competition from entering the market by law. In return, the government allows the corporate beneficiaries of these monopolies to charge the highest prices short of what will cause the people to riot, and then claims that the price is "capped" and "controlled" "in the public interest."

 

[darkamulets]

Originally posted by: PingSpike
If I were running a monopoly, I would just charge more as well. I mean, when you have no competition you might as well maximize profits.

Wow I was thinking the samething.

 

[Rage187]

I'm up to $157 for Comcast.

 

[EKKC]

cable monopoly ftl

and the government isn't doing a damn thing about it. i can't wait for telcos like verizon to start providing cable tv through fiber optics. that'll teach them like the internet did to telcos for long distance phones.

 

[Otaking]

Originally posted by: Rage187
I'm up to $157 for Comcast.

That's just internet and Cable TV? :Q

 

[Amused]

I see lots of accusations of gouging and monopolistic price fixing and it's all conjecture until you show me the profit margins of cable companies and how those margins compare to other private companies.

This thread is a perfect example of people believing what they want to believe.

BTW, I am against the government sanctioned monopolies of utility and communication companies. But I have a strong suspicion that cable companies do not have the huge profit margins to support the accusations of gouging in this thread.

 

[Rage187]

Originally posted by: Otaking

Originally posted by: Rage187
I'm up to $157 for Comcast.

That's just internet and Cable TV? :Q

Yep,

6mb
3 HDTV DVR's
HBO and Stars

The problem is that they charge you an additonal $6 per box for digital basic even when you have the HD package. It's rediculous and we are just counting down the minutes till we move to our new home in November and can finally get Dish or DirectTV. Where we live now will not allow you to have dishes out in your yard or visible on the house.

 

[preslove]

I got 4 letters for ya: ESPN.

 

[Amused]

Originally posted by: Rage187
Where we live now will not allow you to have dishes out in your yard or visible on the house.

That's illegal.

http://www.dish-free-satellite-system.com/hoas.html

 

[slsmnaz]

Maybe it you'd tip the cable guy well the price would drop. You'd at least get better service.

 

[miri]

Because they have a Monopoly

Cable internet is the only highspeed internet available in my area

Even if DSL were available in my area, I would still need a land line which I dont have since I only use cellphones

 

[funboy6942]

Because in most places they have you by the balls.

One there may be no one else you can get you cable tv from so your screwed

Two two if you go sat you sure as hell cant afford sat internet prices so they have you screwed there as well.

Three go sat but no DLS so you have no choice but cable so again, screwed for they wont let you have internet without taking some sort of cable tv along with it.

Four you go sat but between the sat bill and its funky charges especialy if you have a DVR box or god forbid more then one and the DSL charges cable becomes cheaper so again you go back to them with your tail between your leg getting it up the rear with no lube.

So all in all they know they have your balls in a sling and can do and charge what ever they like instead of providing a good sevice at a low price where everyone can say F sat because for once there is a better value in cable.

 

[QED]

Originally posted by: funboy42
Because in most places they have you by the balls.

One there may be no one else you can get you cable tv from so your screwed

Two two if you go sat you sure as hell cant afford sat internet prices so they have you screwed there as well.

Three go sat but no DLS so you have no choice but cable so again, screwed for they wont let you have internet without taking some sort of cable tv along with it.

Four you go sat but between the sat bill and its funky charges especialy if you have a DVR box or god forbid more then one and the DSL charges cable becomes cheaper so again you go back to them with your tail between your leg getting it up the rear with no lube.

So all in all they know they have your balls in a sling and can do and charge what ever they like instead of providing a good sevice at a low price where everyone can say F sat because for once there is a better value in cable.

I can see where you are coming from with this rant...but have you priced out how much money Dish Network or DirectTv spends getting that sattelite in the air? Or how much money Comcast or Cox or Adelphia spend to wire up every house in their local market, even if they don't subscribe or are a distance away from other customers? Do you know how much money satellite and cable companies pay for the licensing of each channel? How much they pay for the licensing of certain technologies (such as DVR or On Demand)?

It ain't cheap. And someone has to pay for it. Guess who? You, the customer. That's the way it works in any business.

My only complaint with the cable and satellite companies is how they force you to choose a channel package instead of being able to pick channels a-la carte...