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<blockquote data-quote="MusicalBuzz" data-source="post: 883656" data-attributes="member: 5555"><p>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.</p><p></p><p>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.</p><p></p><p>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 <em>common</em> <em>platform</em> (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.</p></blockquote><p></p>
[QUOTE="MusicalBuzz, post: 883656, member: 5555"] 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 [I]common[/I] [I]platform[/I] (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. [/QUOTE]
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