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2011/09/26

Will Consumers Save Money as Streaming Grows? - Cable Spotlight

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September 23, 2011

Will Consumers Save Money as Streaming Grows?

By Gary Kim, Contributing Editor

“Don’t sell products into a platform where you end up with less money than when you were selling it to the previous buyers,” says Time Warner (News - Alert) CEO Jeff Bewkes. That bit of advice suggests why consumers might not save much money, if any, as professionally-produced video and movie content distribution shifts from current channels to new channels.

Over-the-top programming could help moderate rising programming costs in the future, Cablevision Systems (News - Alert) chief operating officer Tom Rutledge has said.

Consumers often grouse that their cable television bills go up every year, but video distributors are often just passing along ever increasing costs, says a new report from Ball State University. “The Truth about Cable Rates” finds that while the cost for basic cable television has increased by 54 percent over the last decade, customers are getting more channels, technologies and services that were not available at any price 10 years ago... Read More

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