The TV industry’s response to cord-cutting has finally backfired
The TV industry’s response to cord-cutting has finally backfired
admin 2024/09/15 00:53Endless price hikes on a dwindling pay TV audience only works for so long.
Want to know why Disney channels are still blacked out on DirecTV a full week into football season? Just Google the phrase “offset by higher contractual rates.”
In one earnings report after another, this type of business jargon explains how Disney and other TV programmers have tried to blunt the impact of cord cutting. While subscriber numbers are tanking, programmers prop up revenues by raising carriage fees for their channels—the aforementioned “higher contractual rates.” Instead of making TV bundles more attractive through choice and flexibility, the industry has chosen to fleece whoever hasn’t reached their personal breaking point through routine price hikes.
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Want to know why Disney channels are still blacked out on DirecTV a full week into football season? Just Google the phrase “offset by higher contractual rates.”
In one earnings report after another, this type of business jargon explains how Disney and other TV programmers have tried to blunt the impact of cord cutting. While subscriber numbers are tanking, programmers prop up revenues by raising carriage fees for their channels—the aforementioned “higher contractual rates.” Instead of making TV bundles more attractive through choice and flexibility, the industry has chosen to fleece whoever hasn’t reached their personal breaking point through routine price hikes.
➤➤➤ SEE MORE
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