Seeking Alpha

Cable companies getting chippy with fees

  • Cable TV customers at Comcast (CMCSA -2.7%) and Time Warner Cable (TWC -1.5%) will be charged a fee if they choose to switch to a lower-fee programming package, according to Variety.
  • Fees range from $2 to $6 depending upon the service.
  • What to watch: The tactic could backfire on the companies with new online TV services destined to launch sometime this year. An announcement on Intel's Internet business could come next week. Expect the high pricing in the Pay-TV sector to be a selling point for the new ventures which will offer a more attractive entry point.
Comments (2)
  • MEKhoury
    , contributor
    Comments (195) | Send Message
    The clock is ticking for these dinosaurs' business models. Why not go out with one last insult? Nice job cementing their legacy as the bane of customers everywhere.
    13 Jan, 03:44 PM Reply Like
  • KISS_investor
    , contributor
    Comments (330) | Send Message
    They've already transformed themselves and you missed it.
    The pay tv sector has already become the pay tv/internet tv sector


    It's amazing to me that you'd call them dinosaurs when they provide the broadband you need to bypass all the video you want but don't want to pay for.


    They've already upgraded much of their infrastructure for 100MB service and google is proving they can go even faster (and they will)


    ..they'll continue to provide faster and faster broadband for high def and ultra high def services, and as more customers use the internet to watch TV's they will blanket their neighborhoods with Wifi (Comcast is already doing this), and provide it free to customers


    Their margins are much higher on internet than video....
    In the end, you'll get less video, you'll pay a little bit less for it, and the cable company will make more profit than ever. They will still be able to charge based on their own business desires and what the market will bear.


    that's why their stocks shot the moon last year, and that's why Charter is trying to buy Time Warner cable
    14 Jan, 06:50 AM Reply Like
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