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Is Cable TV Getting Better Or Does Satellite Prevail

February 9th, 2010 at 23:51

The economic market today is rapidly changing. Technology is rapidly changing. The stakes are high for cable TV to be able to keep up with both. The changes and costs associated with technology changes are overwhelming. Though cable has been a staple in many homes for a long time, shifts in the market threaten the future of many networks. Cable providers struggle to continue to keep costs down for consumers.

Cable is fortunate to have been the first on the scene when additional networks started popping up. Some that were originally only offered on cable have since switched format to be available at no cost to everyone. If people wanted to watch lots of movies on television, or just wanted more than the basic channels, then cable was their alternative.

Being the first may not save them. Satellite TV providers have entered the picture and confronted the cable industry with an unreal amount competition. New technology that consumers are clamoring for has not helped out in the cost reduction arena either. To keep up cable has continued to try and lower prices, while at the same time incurring more and more costs. Most people fail to recognize this fact.

For a long time there has been much pressure for cable providers to change the way that they bundle channels for consumers. This pressure has come from a variety of places. Consumers themselves have asked for it. This is so that they can have the option of choosing a smaller bundle of channels if they want. Better yet, many would like to choose the channels themselves, in an a la carte menu sort of set up.

The cable industry initially argued against this, stating that it would actually raise costs and would be too difficult to maintain. However, with new technology, and new pressure from a new source, they are reconsidering. Cable networks everywhere have been in heated disputes over the increase in fees and production costs. The difference in technology and these debates make smaller bundles or individual choice in channel bundles a much more attractive option now.

Networks are wanting to hike up their fees to get back some of what they have lost in production costs. The price of talent in front of the camera can be heavy burden for many to carry. Some that are very popular are putting cable companies in a very tight position, demanding more money or their channel goes away.

This appears to be a case of being careful what you wish for. Consumers may begin seeing smaller channel bundles, and even the ability to put together their own bundle as if ordering from a menu. That does not mean that costs will go down. These new options would be a saving grace for hard strapped providers that have continued to see their expenses rise and their revenues flat-line.

For cable TV, the future ahead is unsure. With rising costs and increased competition, there are few way to meet all of the demands without killing the profits. Then there would be increased pressure coming from stockholders. It is certainly a very fine line that they are walking on.

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