I’m not sure I’m following you. Are you saying Comcast and Dish/Direct TV don’t make money providing service? Maybe Cox doesn’t make much money, I don’t know, but industry is littered with some companies succeeding while others don’t. I am not saying there isn’t a market for Streaming. I’m simply saying there is a market for Cable/Satellite services too. I know there are many who love streaming, but there a many who also enjoy consuming content via one provider, one user interface, instant channel changing, one payment plan, etc.
A few years ago cutting the cord was the rage because it was significantly cheaper, however that is slowing down as streaming services become more expensive. Again, I think an equilibrium on how people consume content is much more plausible.
Basically, that’s exactly it .. they (we) do not make money, or marginally very little. And I’m sorry I don’t have numbers in my head as it’s just not something I keep, but that is the state of affairs.
It has everything to do primarily with the cost of content, but equally so with the cost of acquisition, eg the set top boxes, cost to refurb, cost for customer care support, etc. Again, with apologies for perhaps grossly paraphrasing.. but I have heard through team meetings that Cox for one is tired of being raked by the large groups — ESPN, Discovery, etc — dealing the rate increases and inevitable “blame the cable company” for that. And when one considers the low margin to start with — couple this with cord-cutters and reduced subscribers — it is not a particularly profitable product line.
For certain the industry and technology landscape is changing rapidly — but there’s a reason ESPN et al is aggressively promoting streaming services. And the direction is leading to where the cable company may simply provide a conduit and
common platform (noting, of course that Cox and Charter and others uses Comcast’s platform today) to content (and a rental fee for a small box), but the billing and arrangements would be made with the content owners. This was the projection relayed to our group at the time by the SVP.