Re: AT&T/Comcast rates

[Dan Billings <billingsdan@yahoo.com>]

The problem with per channel pricing is that most of
the cable channels make much of their money through
advertising and advertisers look, in part, at the
number of homes that the channel is available in. 
Most program providers push to make sure that their
most wanted channels are part of the basic package. 
NESN recently made that switch to increase advertising
revenue.

Programming is a major expense, but so is
infrastructure.  I was on the local water district and
though we charged based on useage, most of the
district's costs were the same even if we pumped no
water in a month.  Cable TV fixed costs are not as
extreme, but they are a major part of the cost.  As a
result, my guess is that if the industry switched to
per channel pricing, the costs per channel would be so
high that it wouldn't make sense for most viewers.

I just switched to digital cable this week.  I think
the benefit is marginal for an extra $10 per month --
but I do like the audio music channels.  Americana and
Classic Country in particular.  I made the switch
because my system dropped PPV from their non-digital
service and I do like the option of buying the big
boxing matches.

-- Dan Billings, Bowdoinham, Maine

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