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To: mylife

Yep, but why hurt your customer?

That seems a counter intuitive, anti-business thing to do.

“We can’t decide, so we’re going to make the customer pay.”


5 posted on 12/29/2014 4:07:49 PM PST by xzins ( Retired Army Chaplain and Proud of It! Those who truly support our troops pray for victory!)
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To: xzins
This sounds similar to the long-running dispute a few years ago in the New York City area between Cablevision and the YES Network (the cable network for the New York Yankees). I'll try to explain it using hypothetical round numbers.

The Yankees wanted Cablevision to pay them $30M per year to broadcast the YES Network.

Cablevision came back and said they could do that, but it would cost their 1 million cable subscribers in the NYC region about $30 per year (or $2.50 per month) in higher cable charges. They agreed to do it, but only if the YES Network was sold as a premium channel to those subscribers who were willing to pay extra for it. They figured that maybe 200,000 of their subscribers would sign up for YES as a premium channel ... and since the $30M would be covered by 200,000 viewers instead of 1 million, the average subscriber who was a Yankee fan would be paying $150 more per year ($12.50 per month) for the deal. The Yankees wouldn't accept that deal because they didn't want to be listed as a premium channel on Cablevision. They were adamant about getting YES on Cablevision as part of a basic package.

Cablevision said they'd rather ditch the YES Network entirely rather than pay the $30M and raise their cable rates for all of their customers by $2.50 per month. They apparently did the math and estimated the number of their 800,000 subscribers who were not Yankee fans and who would drop their cable service rather than pay the extra $2.50 every month.

That dispute lasted quite a while, and I think it goes to the heart of the issue over cable packages and subscriber fees for basic channels vs. premium channels.

47 posted on 12/29/2014 6:49:00 PM PST by Alberta's Child ("The ship be sinking.")
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