Stop_HammerTime69 said:
Cuervohola said:
There is a lot of variables of course, but the companies are leaving a ton of cash on the table no matter how it's looked at.
The problem is that our current model simply doesn't work for cord cutting. It's all based around subscriber fees, typically a few cents per channel per month, (however ESPN is the largest at nearly $4.25 a month) tiny subsections of your cable bill. This worked great for a while, and meant that the large networks got their share, but smaller, more niche networks got decent revenue from people who weren't watching their shows, but also paid for that channel. This was the driving force in the last round of major conference realignment. The main reason the Big Ten added Rutgers is now some 15 million people are paying for subscription to the B1G network without watching it.
Essentially, this is a socialist model. Small networks get enough cash to produce decent high quality content for their smaller audiences, and the major networks can fleece everyone because how your cable package is set up is a mystery.
The networks aren't leaving money on the table. They're scrambling to fix a system that won't work for a picky, economically-recovering society.
You have some good points, but I heard ESPN was more like $6, while every other channel was pennies or at the most $1 and a few cents... Cord cutting has to be why ESPN jettisoned most of their on air staff.
The cable and satellite companies are leaving the money on the table, not the networks. I could be wrong, but I would think the networks want to be in every package, like blank channel 1 is available on all the packages for Directv, but blank channel 2 is only on the middle and premium package...
We will probably never see a breakdown of the contracts between the companies and the networks, but if I'm the owner of blank channel that costs the consumer 25 cents, and I get 10 cents of that, I want every possible household to see my channel, so I might negotiate down to 7 cents, provided that I'm included in every package.
Now, I might own the channel that has synchronized swimming and underwater basket weaving which nobody watches, thus I have zero leverage... When you look at the other side with ESPN, which had ALL the leverage and paid their anchors $$$$$$$$, the "impossible" happened and they collapsed like a bad Jenga dream.
The more "reality" trash that is invented, the more people cut the cord because they can get that garbage with an antenna... The Food Network channel isn't going anywhere, but I can get lots of cooking shows on PBS...