Pirate,
Not so fast. How are cable companies going to raise the rates on people who, for example: watch ESPN, via a streaming pay-TV bundle serviced by DirecTV (AT&T), transported to their home via fiber-optic service from a local company??
The cable company doesn't even have an imprint on that equation, unless its parent company also owns the content creator (the channel). Then maybe.
But we actually just saw Time Warner
Inc. (NOT Time Warner Cable, as many articles screwed up) just purchase a stake in Hulu, which will begin streaming pay-TV service soon and will feature some TWI channels. TWI owns a
large number of channel properties:
https://en.wikipedia.org/wiki/List_of_as...ime_Warner
Bruce,
Increase the price too much, and they'll lose a lot of customer --> probably.
Don't increase the price, and they'll lose massive amounts of revenue --> guaranteed.
So if I'm them, I'm going with increase the price. And it will be huge, relatively. No, not some ridiculous amount, like you're trying to frame it.