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Here’s Why Premium TV Providers Push Bogus Plans

By S.Cadet / 08.12.11

Cable and satellite providers are really good at offering hundreds of channels when you’ll likely watch a few at most. Sports fans, such as myself, are assed out since premium TV has a stranglehold on live events. But what about those who don’t care about televised sports, “smarten up” and cancel their service? Over 200,000 of them dropped their service last quarter. That ought to get the man shaking in his boots right? Turns out cable and satellite providers aren’t that concerned.

“Studies have found those going without cable aren’t doing so because of over-the-top streaming offerings. Instead, those who are choosing to go without cable are doing so because they either don’t see much value in pay TV packages, can’t afford to keep paying for TV, or some combination of the two.

Operators acknowledge that the few video subscribers who have left the pay TV ecosystem so far have most commonly been on the bottom end of the cable value chain — that is, generally low-income users that just paid for TV and didn’t subscribe to broadband, HD or other higher-value services. And for most operators, that’s ok because they weren’t very high-margin customers anyway.” [GigaOM]

The article goes on to explain how companies target better off customers in hopes to tie them to more lucrative subscription tiers: enabling them to make more dough hand over fist. These customers make up for the cheapos cutting their subscriptions and fuel the models people on the fringes complain about. More importantly, the trend shows how the buy in bulk system won’t morph into something more customizable. So, for now and the foreseeable future, keep dreaming for that bro tier service offering ESPN, Pro and NCAA sports networks, select shows and HBO. It won’t get here anytime soon despite its potential to be the best TV deal known to man.


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