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Pay TV Disruption Doesn’t End With Unbundling | TechCrunch

In a simplistic generalization, unbundling would remove the subsidization of pay TV, banishing the requirement for every pay TV subscriber to bear the cost of content that only a portion of the subscriber base actually wants and consumes, e.g., sports content, typically the most expensive channels.

Ostensibly, the logic makes sense. But when you follow it further, the reality for many households is that their broadband Internet access is provided by pay TV operators.

Even if they decide to become cord cutters – or more accurately, pay TV cutters – their access to OTT content will still be dependent on the broadband pricing policies of the very same pay TV provider, who have incentives to “optimize” pricing, performance, and features around their offering, whether broadcast or digital.

The issue is not just about paying for content, but the dependency in how content is accessed.

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Pay TV Disruption Doesn’t End With Unbundling.

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