OnDemand WTP Pricing Research

No Shortage of Ways to Bring TV Prices Down | Public Knowledge

Virtual cable services show that it’s not impossible, provided you have a company that is willing to lose money on every subscriber for a while, which is not something you can count on forever. There’s a reason why many online video services, such as Netflix and Amazon, focus more on back-catalog and original programming, instead of competing head-to-head with cable.

If policymakers want to ensure that “skinny bundles,” more consumer choice including a la carte options, and other innovative services are available, they should consider changes to the policies that make competing in this space so difficult, and keep prices high even in traditional cable (which remains an extremely popular, profitable, and stable service). I’ll review some of these below:

  • Eliminate basic tier buy-through rules

This one should be easy: It’s actually illegal for cable companies to allowing customers to opt out of paying for local broadcast stations—the very ones they can get for free with an antenna. Let’s change that.

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No Shortage of Ways to Bring TV Prices Down – Public Knowledge.

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