Pay-TV A La Carte Could Put 1 Million Jobs At Risk

osu1991

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Pay-TV A La Carte Could Put 1 Million Jobs At Risk: Analysts - 2012-06-25 14:44:08 | Multichannel News

Pay-TV A La Carte Could Put 1 Million Jobs At Risk: Analysts
Needham & Co. Estimates Only Five to 10 Channels Could Survive in Unbundled Market


By Todd Spangler -- Multichannel News, 6/25/2012 10:44:08 AM

If the U.S. government mandated that TV channels be sold individually, only five to 10 traditional TV networks would survive -- destroying up to $300 billion of value, endangering some 1 million jobs and curtailing consumers' video choices, according to an analysis by Needham & Co.



I think more than 5-10 would survive, but 30 or so would surely go away.
 
osu1991 said:
Pay-TV A La Carte Could Put 1 Million Jobs At Risk: Analysts - 2012-06-25 14:44:08 | Multichannel News

Pay-TV A La Carte Could Put 1 Million Jobs At Risk: Analysts
Needham & Co. Estimates Only Five to 10 Channels Could Survive in Unbundled Market

By Todd Spangler -- Multichannel News, 6/25/2012 10:44:08 AM

If the U.S. government mandated that TV channels be sold individually, only five to 10 traditional TV networks would survive -- destroying up to $300 billion of value, endangering some 1 million jobs and curtailing consumers' video choices, according to an analysis by Needham & Co.

I think more than 5-10 would survive, but 30 or so would surely go away.

It's too bad the article didn't indicate who bankrolled the Needham study. But we can probably guess for ourselves.
 
Lets see Big 4 network produces 13-18 hours of new programming a week during the main season. A cable network 1-3. So, you could eliminate 85% of the cable networks and consolidate their programming to the remaining.... People would pay $5-10/channel/month if they delivered 15 hours of new programming a week.

But, the biggest flaw is that it claims 1 million jobs would be lost. In reality people would still spend the money on something else creating different jobs. They may just not be in the cable television market. People are very unlikely to just sleep on a wad of cash in their mattress that they saved from cable TV subscriptions, they will spend the money.
 
A la carte worked fine for all in the c-band world... you'd pay a little more for a single channel than you would in a pkg, but then again w/ the packages, they'd include some free channels with the note that "if channel scrambles, you'd get it free until time to renew."
 

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