Pricing into Oblivion
Posted in Uncategorized on January 6th, 2010 by andrew mackay – 3 Comments CNN talked about cable prices going up. Up. You read that right, up. As in “We’re losing subscribers because people have so many other ways to get access to content, we need to find ways to react to what consumers want… lets raise those prices.” Crazy.
The music industry was forced to adopt new pricing, but it’s worked for them (forced upon them first by Steve Jobs, then by all the other digital distributors). And now, people buy only the songs they want. It puts the onus on the musician to release an album his or her fans will want to buy every song on.
The problem is very similar with TV. How many channels of your cable package do you actually want? I can count 18 if I really stretch. Now, knock out the ones that can be totally replaced by the internet, and we’re down to approx. 12.
What HAS to happen is the cable providers have to figure out how to let me buy what I want without the other stuff. If they won’t, then the online streaming options will… if Netflix gets a little better, combined with Hulu, TV.com, and a few others, it’ll just make no sense at all to pay the cable company for a bunch of things I don’t want.
But no, burying their heads in the sand and raising prices… that’s a good call too.