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VTHokie2000

Joined: 01/01/2005 Posts: 33818
Likes: 12458


While it appears that we may have a long way to go before


streaming becomes the main way people watch TV. You have to keep in mind how quickly and rapidly humans can make advancements in technology. Since telecommunication industry is pretty much an oligarchy (or even a monopoly in some areas), there is less incentive for companies to reduce cost and ultimately the price for their service. Perceptually speaking, it is easier for telecommunication companies to just pass more of the cost onto the consumers via increasing the monthly bill. I am not saying the rate increases aren't justified or not because that is an entirely different discussion.

However, as more consumers have to deal with debt (credit card, student loans, etc), then it reduces their discretionary spending. Over time as people's discretionary spending decreases consumers will start to demand more control over the channels that comprise their monthly bill. Why pay for over 150 channels when you (and your household) may really only watch 50-60 channels in a year? Since cable/satellite provider's current business model is pro "bundling" (vs. pro a la carte) that opens the door for streaming companies to get their foot in the door. Once streaming companies have more contracts in place with various networks, then that could force cable/satellite providers to rethink their business model. Why continue paying Verizon for 150 channels even though you may only watch 50 channels in that package when you can pay the same price while using Roku to watch 200 channels?

Another thing to consider is if you enjoy watching foreign channels (especially for sports), then it can sometimes be difficult to gain access to that channel through a cable or satellite provider. However, you may have an easier time obtaining access to a foreign channel via a streaming company. If humans are truly a global society and live in a global market, then eventually telecommunications may need to continue to become more global in terms of easy access for consumers while keeping cost/price reasonable.

(In response to this post by Will Stewart)

Posted: 03/08/2016 at 4:26PM



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Current Thread:
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