by Mike Masnick
Tue, May 5th 2009 2:34pm
While we've noted that the various studios, such as NBC Universal have, in the past, laughed off the idea that people would ever cancel their cable TV service in favor of just getting their content online, they're clearly waking up to the problem. That's why they freaked out about services like Boxee, despite the fact that Boxee is just a TV-optimized browser for legal content. Still, Saul Hansell, over at the NY Times, gets to the heart of the matter, by noting that the content providers have kept jacking up their prices to cable providers, and those costs keep getting passed on to users. Right now, it hasn't been a clear problem, as subscribers have increased, but the costs keep getting higher, and it's eventually going to drive customers to seek alternatives. We've seen this in the past, of course: Hollywood execs try to squeeze more and more out of people now with no thought for how that will impact revenue in the future. That's not a very good way to run a business, and the TV content providers are going to start discovering that sooner rather than later, if they don't start paying attention.
If you liked this post, you may also be interested in...
- The Cord Cutting The Cable Industry Says Isn't Happening, Keeps Happening
- Techdirt Podcast Episode 112: When A Typo Breaks The Internet
- Top Russian Net Official Says Children Under 10 Shouldn't Go Online -- At All
- Comcast's Decision To Charge Roku Users A Bogus Fee Highlights Its Uncanny Ability To Shoot Innovation In The Foot
- T-Mobile Not So Subtly Hints That It Wants To Disrupt The Cable TV Industry