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NY Post

Death to the Cable Bundle? How One Current Standoff May Speed It Along

Dec 30, 2015  •  Post A Comment

A battle currently taking place between a consortium of cable operators and the cable net group AMC Networks may help bring about the death of the cable bundle, according to a report in the New York Post.

“The consortium, which represents about 4 million homes, is refusing to pay a demand for what they claim is a tripling of AMC Networks’ fees — and [is] telling subscribers they can get AMC’s popular ‘The Walking Dead’ through streaming services,” the Post reports.

The report notes that small cable operators earn a margin of about 10% on pay-TV service, vs. margins as high as 90% on broadband service. That means the National Cable Television Cooperative, the group involved in the AMC standoff, may be happy to kill off the TV bundle to expedite cord cutting.

“The shift could influence the bigger cable companies, like Comcast, where this year the number of broadband subscribers passed pay-TV customers,” the report notes.

national cable television cooperative

2 Comments

  1. “The report notes that small cable operators earn a margin of about 10% on pay-TV service, vs. margins as high as 90% on broadband service.”

    And look for that latter percentage to go even higher as rates for broadband increase as broadband usage goes up as a result… not to mention additional fees for many users who go over their limits.

  2. The one other place where broadband providers are going to start making a profit is speed. Some are now charging various rates based on the speed you are getting and if you want a lower rate, they will throttle your speed appropriate to the rate they charge.

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