Strategy: Don't Make Your Rates Cheaper; Force Higher Taxes On The Competition

from the so-that's-how-it-works dept

Cable TV seems to be one area where rates have been increasing a bit more rapidly than just about any other service. The cable companies like to blame the content providers who keep charging more — and, indeed, that’s part of the problem. However, as cable gets more and more expensive, it’s only driving people to look elsewhere. Satellite TV providers Dish Network and DirecTV have capitalized on this to scoop up many customers by offering cheaper starter packages — and apparently it’s working. The cable companies, rather than trying to figure out ways to reduce their rates, are now apparently pushing for higher taxes to be charged to satellite providers. The argument they’re making, of course, is that they’re taxed locally, so taxing the satellite guys is only fair. The problem with that, though, is the reason cable providers are taxed locally is because they use up local resources (and often are granted local monopolies).

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