Originally Posted by Artikbot
Wait, do you Americans have no terrestrial TV with good content?
I mean, the one you pick with your antenna on the roof, that's free...
Because here in Spain very little people pay for TV; and I see most of the posts here referring to subscriber TV like the only TV available.
No, we do not.
Due to large corporations and how the FCC, Federal Communications Commission, the governing body, works we are extremely limited. The television networks and major media conglomerates that own them have near limitless control over the entire microwave spectrum, and what can and can not be put in it. This control extends to free broadcasting, data, etc etc....
In short, it is a Kingdom controlled by a few powerful pressing their desires and will onto the masses.
Originally Posted by Desidero
Hardly anyone I know around my age pays for TV. An internet connection + Netflix and/or Hulu is sufficient. It's strange to see the cable companies pushing the price of their service up instead of down when their market is vanishing.
Unfortunately an aspect of being a cable operator that the consumer doesn't see is the cost per subscriber, or even homes passed.
The networks and their owners demand that an operator pay them, on a monthly or quarterly basis typically, for every subscriber they have. In some cases like MTV Networks, they require the operator to pay for EVERY HOME PASSED, not just subscribers. This cost is increased on a regular basis, due to some arbitrary data it seems, and it becomes very difficult for the cable provider to "negotiate" with them. Frankly it comes down to the networks saying "Pay us more or you can't broadcast ANY of our channels". There isn't much "negotiation" going on with them. The other drawback, using MTV Networks as a prime example, is even if you don't carry all of their channels, as an operator you have to pay for all of their channels. So your smaller cable operators really get the shaft in this regard.
So if you are a small operator, and your plant passes 4,000 homes, but you only have 900 subscribers, and carry 3 of MTV Networks channels, you still have to pay them for 4,000 homes and their entire channel lineup. To compound this issue, these networks are constantly adding to their network, driving up cost further. Eventually providers can't afford to absorb those costs anymore and rate hikes are issued.
This is also why you have groups like the NCTC, the National Cable Television Cooperative, where many smaller providers come together and go to the networks to try and negotiate as one collective.
So not only do these large networks have untold amounts of money pouring in from cable operators and their associated subscriber fees, but they also have massive amounts of money pouring in from advertisement. This is why they can afford to pay people like Ryan Seacrest $35,000,000 a year to MC for a freaking talent show.
If people want to complain about cost, look at the networks and the FCC.Edited by PostalTwinkie - 12/12/12 at 12:12pm