Why is cable so expensive?

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Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Originally posted by: 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.
No amount of government regulation and good business practices can make up for the lack of competition in the marketplace caused by a government enforced coercive monopoly. In fact, I actually have to pay for the "priviledge" of this monopoly, via a monthly surcharge to the local cable regulatory commission.
 
Aug 16, 2001
22,505
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Because I think there is some kind of cartel dividing the market creating a local monopoly which means they can charge whatever they want. :thumbsdown:

For example:
In Charlottesville VA (where I live now) the ONLY cable company is Adelphia. Hmmmm.....
In Tucson AZ (where I used to live) the ONLY cable company is COX. Hmmm.....
 

Sphexi

Diamond Member
Feb 22, 2005
7,280
0
0
Up here in Canuckia we'll be paying about $120/month for 8mbps/1mbps Internet (but with a 60GB/month cap), full analog cable (60+ channels) and their VoIP (comes witha neato Motorola modem/VoIP box with a built-in battery). Not too horribly priced for what we're getting, and already I've noticed a distinct lack of late-night infomercials on Canadian channels compared to US ones. Hell, I get Showcase in the basic package, and they show Cinemax style porn late at night :D
 

waggy

No Lifer
Dec 14, 2000
68,143
10
81
when i lived in town we had comcast. Well they would always raise the rates so a 2nd place wanted to come in (a LOT cheaper). well comcast complained and threatened a lawsuit. finally they aggreed on a deal witht he city.

comcast would not raise rates for like 5 years and some other stuff if they signed a contract saying they would be the ONLY provider in town.

well not 3 montsh after the signing comcast raised the price. the city said they could sue them but that would force prices up more.

so after all that happened we found the city was a spineless paice of crap and comcast could do whatever they wanted.


but since i moved out in the country i am forced with satalite. i HATE IT. i would go back to comcast if i could heh
 

preslove

Lifer
Sep 10, 2003
16,754
64
91
Content providers are also a big reason for expensive basic cable bill. If Cox Cable doesn't buy ESPN from Disney Corp. everyone will switch to sattelite. The problem is, Disney Corp. isn't just going to sell Cox ESPN, but it's going to force them to buy a PACKAGE of ESPN, ESPN 2, Disney Channel, and a few others at an inflated price because they know that Cox NEEDS ESPN. IMHO legislation needs to passed to outlaw that kind of packaging. It's extortion, plain and simple. I should be able to buy the channels I want and not pay for the freaking disney channel. Wacko Christian fundamentalists shouldn't have to pay for MTV, either.
 

yakko

Lifer
Apr 18, 2000
25,455
2
0
It is for the children. WON'T SOMEBODY PLEASE THINK OF THE CHILDREN?!?!?!?!?!?!
 

Sheep

Golden Member
Jun 13, 2006
1,275
0
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Originally posted by: preslove
Content providers are also a big reason for expensive basic cable bill. If Cox Cable doesn't buy ESPN from Disney Corp. everyone will switch to sattelite. The problem is, Disney Corp. isn't just going to sell Cox ESPN, but it's going to force them to buy a PACKAGE of ESPN, ESPN 2, Disney Channel, and a few others at an inflated price because they know that Cox NEEDS ESPN. IMHO legislation needs to passed to outlaw that kind of packaging. It's extortion, plain and simple. I should be able to buy the channels I want and not pay for the freaking disney channel. Wacko Christian fundamentalists shouldn't have to pay for MTV, either.

<cable company>But giving consumers the choice of a la carte channels rather than a handful of tiers with 75% channels no one watches will lead to higher prices for everyone!</cable company>

 
Aug 16, 2001
22,505
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Originally posted by: Sheep
Originally posted by: preslove
Content providers are also a big reason for expensive basic cable bill. If Cox Cable doesn't buy ESPN from Disney Corp. everyone will switch to sattelite. The problem is, Disney Corp. isn't just going to sell Cox ESPN, but it's going to force them to buy a PACKAGE of ESPN, ESPN 2, Disney Channel, and a few others at an inflated price because they know that Cox NEEDS ESPN. IMHO legislation needs to passed to outlaw that kind of packaging. It's extortion, plain and simple. I should be able to buy the channels I want and not pay for the freaking disney channel. Wacko Christian fundamentalists shouldn't have to pay for MTV, either.

<cable company>But giving consumers the choice of a la carte channels rather than a handful of tiers with 75% channels no one watches will lead to higher prices for everyone!</cable company>


;)
I think that's actually what's going to happen. I had 137 channels + internet and paid $140 for that. Take out the cable, lets say $40, we got $100 for 137 channels or ~73 cents/channel.
If I could pick any channels I'd probably end up with 20 channels tops or $15/month. No way in hell a cable company would go for that. They'd probably charge me $29.95 for that.
 

arod

Diamond Member
Sep 26, 2000
4,236
0
76
Because they only get good if you bundle things together.

I pay $120 for the follwing:

Full Digital Cable (all analog channels included... digital cable is less than $10 higher than full basic which is more or less 70 analog channels)
HDTV Service (included for free with digital cable)
Preferred Internet (middle tier 4.0/512)
2 HD-DVR's
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: acemcmac
Topic Title: Why is cable so expensive?

$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 :confused:

Awwwwww, you have to go to another Country to enjoy the benefits of Technology now.

The U.S. is second class to the almighty Corporation whores.

Enjoy
 

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
76
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.

I've found that most areas have very different pricing ranges.

In my area I pay about $49/month after taxes for 6 Mbps down and all of the basic TV channels. If I wanted comedy central, scifi, and all of those other channels, I'd have to pay an extra $10-$20 monthly. Frankly, I download any television shows that I want to watch because I'm never around when my favorite shows are on.

Bit torrent FTW

 

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
76
Originally posted by: 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

Yeah, DSL is unfortunately just too expensive if you don't already have the land line. I'm in the same situation. It would cost me more to use DSL with the bare minimum 1.5Mbps download than to use cable internet.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: 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."

"will cause the people to riot"

We rarely agree on anything but Rioting is the only way the poor pitiful Americans will be able to break away from both the Corporate whores as well as the Government they control.
 

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
76
Originally posted by: MathMan

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...

I wish one day the cable companies would pick up that model. Unfortunately, they're probably able to make more money by bundling several channels together. There are probably contracts of some sort that the various networks have with the cable companies, too.
 

Baked

Lifer
Dec 28, 2004
36,052
17
81
Less than $19/month w/ expanded cable here. I get ESPN and ESPN2. Winner.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: yakko
It is for the children. WON'T SOMEBODY PLEASE THINK OF THE CHILDREN?!?!?!?!?!?!

Exactly, American children are now being trained to be stupid.

If you want your child to be smart, have to leave the U.S. and that is not a option in many Countries. Many Countries do not allow Americans to get a job in their Country such as Mexico for example.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: 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.

Technology has improved making the cost of delivery of said technology cheaper to provide.

The fact that prices are rising beyond the cost of inflation clearly points to Corporate Whoring.

Nothing more nothing less.

I know you bow to the Corporate Gods but many others do not have to extra cash burning in their pockets to give to your Gods.