I don’t say this often, in fact, I’m not sure I’ve ever said it before, but I have started to feel a little sympathy for cable companies. No, I haven’t lost my mind, it’s just that their life is pretty tough these days.
You can begin with the fact that cable companies are among the least liked corporate entities in our culture. A survey last summer by Consumer Reports placed several of the biggest cable and internet providers at the very bottom of the list when it came to customer satisfaction and value.
Which is interesting to me as well. One of the more common complaints about these services is their price. You would think that offering lower priced services could improve consumers view of value and make it appear that the companies were responding to customer demand. With the growth of the cord-cutting movement, I’ve discussed before this would seem to be the obvious move.
Well, this is one of those places where I begin to feel some sympathy for the cable companies. Because it’s not that easy. There’s a simple solution to making lower priced cable packages. Drop sports. The sports networks and general sports coverage are routinely the most expensive items that have to be paid for.
What kind of cost difference? Some experts say a basic package could be as low as twenty dollars a month, others say that a sports-free package of up to one hundred channels could be offered for thirty-five dollars. At that price, other experts claim that the profit margin for these packages could be in the thirty percent range.
So why do I feel sympathy for the cable companies? Because of the big television production companies, folks like Disney (which owns ESPN) and the broadcast networks, want no part of a world that cuts out their big money makers. Disney has already sued one cable company for offering a sports-free package. Contract language requires that all their networks be included in the most popular channel bundles. That could limit the number of sports free bundles that are available. The cable service providers find themselves in something of a damned if they do, damned if they don’t situation.
As a baseball, football, hockey, international soccer and Formula One racing fan myself, a sports-free package just won’t work. But I know plenty of folks who would leap at cutting their TV service bills by dropping what my daughter refers to as “sportsball”.
So, without absolving the cable companies of all their mistakes that make us generally dislike them so much, not everything is completely in their control. Our best bet is to continue making enough noise to get all the players listening to us.
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