Bottom line in all of this is DISH is shedding customers each day because of the programming costs. Programming costs keep going up. DISH has to get a handle on its costs for the new reality.
Fox sold the RSNs because they didn't see profit in them...they cost too much and most don't want them. Team owners take most of the profit now. This model is broken.
Local channels are also at a crossroads. The networks paid big $$ for content and sports....they need to pay for this.....local channels are having to fork up $$ to carry and their ad rates are compensating this enough. Networks also started the problem selling content to Hulu, etc. Now they compete with themselves.
The best option is one proposed by DISH several years ago.....unbundle the local channels from each other....meaning a subscriber can subscribe to one or all...or none....and let the customer decide individually if the cost of that channel is worth it to them. Of course now local channels have to compete for business....and show us all why $1.50 for channel x versus 2.50 for channel Y. This has a way of screwing the whole model up too....local channels won't be able to keep their revenues up and will lose customers....sure they'll sign up during super bowl month, but drop it right after.
local stations now risk screwing their model up altogether....DISH is installing free antennas to many customers in an attempt to break up the local model. It works in metro areas....bottom line is rural America has little option....but they often do have retransmitters here and there....
But each day another customer cuts the cord.
Fox sold the RSNs because they didn't see profit in them...they cost too much and most don't want them. Team owners take most of the profit now. This model is broken.
Local channels are also at a crossroads. The networks paid big $$ for content and sports....they need to pay for this.....local channels are having to fork up $$ to carry and their ad rates are compensating this enough. Networks also started the problem selling content to Hulu, etc. Now they compete with themselves.
The best option is one proposed by DISH several years ago.....unbundle the local channels from each other....meaning a subscriber can subscribe to one or all...or none....and let the customer decide individually if the cost of that channel is worth it to them. Of course now local channels have to compete for business....and show us all why $1.50 for channel x versus 2.50 for channel Y. This has a way of screwing the whole model up too....local channels won't be able to keep their revenues up and will lose customers....sure they'll sign up during super bowl month, but drop it right after.
local stations now risk screwing their model up altogether....DISH is installing free antennas to many customers in an attempt to break up the local model. It works in metro areas....bottom line is rural America has little option....but they often do have retransmitters here and there....
But each day another customer cuts the cord.