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Okay, so it's a first for a broadcast company to charge money. That stinks, but let's look at it logically:
Fox Broadcasting has been free up until now because it was able to "pay for itself" so-to-speak because of advertising.
Incoming Money:
* More channels to pick from - less advertisers
* Hulu, pirates, youtube - less viewers
Less viewers + less advertisers = Less Income
Outgoing Money:
* Cost of technology - increased
* Cost of shows - increased
* Cost of personnel - increased
What does that mean? Rising Costs
Less Income + Rising Costs = ???
NOT PROFITABLE.
And it seems like Fox is not the only one changing stragies to try and get out from the hole that is free broadcasting:
"Some companies are changing their strategies as a result. CBS (CBS, Fortune 500) and ABC's parent company Disney (DIS, Fortune 500) are reportedly in negotiations with Apple (AAPL, Fortune 500) to license streaming programming on the Apple TV product. NBC's parent company General Electric (GE, Fortune 500) recently announced a deal with No. 1 cable provider Comcast (CMCSA, Fortune 500) to hand over control of the broadcast station and its cable companies."
Now, if you were running a business and giving away a free product... but were ending up in the hole, what would you do?
It's the free market at work here. Fox Broadcasting is offering a product at a price. TWC doesn't like the price. So, either somebody is going to budge... or they will part their separate ways. It happens. Then, of course, we'll see what happens to Fox and what happens to TWC. Methinks somebody is going to budge.
Something that had me chuckle: Time Warner Cable is also having problems negotiating with The Weather Channel.
Other strategies is one thing, to charge for a Broadcast station is something totally different and sets a very dangerous precedent IMHO. Also the increases are just staggering in regards to the other Fox channel;s its in excess of 300%. It is one thing to have increases to make up for last revenue, a 300% increase however is just pure greed.
Should the Fox deal fall through, I'd be quite tempted to treat my family and switch them to Time Warner Cable! To be Joe Buck-free would be priceless! I'd actually gladly pay more for that luxury as our home would be forced to subscribe to the MLB/NFL Networks' broadcasts for the all-important games!
Other strategies is one thing, to charge for a Broadcast station is something totally different and sets a very dangerous precedent IMHO. Also the increases are just staggering in regards to the other Fox channel;s its in excess of 300%. It is one thing to have increases to make up for last revenue, a 300% increase however is just pure greed.
Other strategies is one thing, to charge for a Broadcast station is something totally different and sets a very dangerous precedent IMHO.
Perhaps you haven't read into these other strategies. That Apple TV strategy? It's the exact same thing as what Fox is doing. The exact same thing - just a different person is cutting the check:
Quote:
Apple would pay media companies about $2 to $4 a month per subscriber for a broadcast network like CBS or ABC, and about $1 to $2 a month per subscriber for a basic-cable network.
So, are we going to put ABC and CBS on the coals for charging as well? ((Oh, and they seem to be charging more than Fox is!))
Quote:
Originally Posted by Smash255
Also the increases are just staggering in regards to the other Fox channel;s its in excess of 300%. It is one thing to have increases to make up for last revenue, a 300% increase however is just pure greed
First of all, either your math is a little off or you're not reading the article. Fox is going from $0 per subscriber to $1 per subscriber. There's no mathematic possibility of going from 0 to 1 being a 300% increase.
In fact, a 300% increase of 0 is STILL ZERO.
Fox is just asking for payment - the same $$ amount of which TWC is paying for other stations, according to the CNN article on the matter. Again, it's more than just Fox who is having problems with negotiating costs. Let me quote the article from CNN. Read it and tell me where it says that Fox wants a supposed 300% increase?
Quote:
, Time Warner Cable claims some networks are demanding up to a 300% price increase, which will make the cable provider hike prices "significantly" for its customers to cover the costs.
FTR, I don't really watch TV. Ever. I've got more important things to use my TV for... like Left for Dead 2.
Perhaps you haven't read into these other strategies. That Apple TV strategy? It's the exact same thing as what Fox is doing. The exact same thing - just a different person is cutting the check:
So, are we going to put ABC and CBS on the coals for charging as well? ((Oh, and they seem to be charging more than Fox is!))
First of all, either your math is a little off or you're not reading the article. Fox is going from $0 per subscriber to $1 per subscriber. There's no mathematic possibility of going from 0 to 1 being a 300% increase.
In fact, a 300% increase of 0 is STILL ZERO.
Fox is just asking for payment - the same $$ amount of which TWC is paying for other stations, according to the CNN article on the matter. Again, it's more than just Fox who is having problems with negotiating costs. Let me quote the article from CNN. Read it and tell me where it says that Fox wants a supposed 300% increase?
FTR, I don't really watch TV. Ever. I've got more important things to use my TV for... like Left for Dead 2.
Apple TV is a completely different....
The 300% increase is the overall increase in fees Fox is charging Time Warner.
Fox entertainment does not mean Fox NEWS will not be on your tv show.. but since you hate it so much, you can simply change the channel...
Once again, you take a response to something you said totally out of context and try to spin it to mean something it doesn't.
There was absolutely no reference to anything having to do with contracts in the comment I was responding to. It was about you're questioning how anyone could know if the people negotiating were right wing. It's Murdoch, it's right wing.
And don't let the friggin' TV legitimize your thought.
I dont let the tv legitimize my thoughts...why dont you read some of my posts on this forum. I think for myself and dont just take the word of anyone. Like I am assuming you accept the word of out government, who hasnt told us the truth since...probablly Bush sr., even he wasnt honest.
Once again, you take a response to something you said totally out of context and try to spin it to mean something it doesn't.
There was absolutely no reference to anything having to do with contracts in the comment I was responding to. It was about you're questioning how anyone could know if the people negotiating were right wing. It's Murdoch, it's right wing.
Its FOX and TIME WARNER.. What makes you sure TIME WARNER is Right wing? You seem to want to blanket everyone involved in negotations as right wing. Sure, Murdock is right wing, but is there any evidence that those doing the negotations are on either side?
It is true, friends have got letter stating exactly this, and if they do, my friends will be dropping them like a pancake. I do believe that it is not the News Stations. Silly for them to do this.
It is true, friends have got letter stating exactly this, and if they do, my friends will be dropping them like a pancake. I do believe that it is not the News Stations. Silly for them to do this.
So do you think Time Warner should just agree to a 300% increase in fees from Fox?? Do you think that Broadcast stations which have always been provided for free, should charge a fee?
Should the Fox deal fall through, I'd be quite tempted to treat my family and switch them to Time Warner Cable! To be Joe Buck-free would be priceless! I'd actually gladly pay more for that luxury as our home would be forced to subscribe to the MLB/NFL Networks' broadcasts for the all-important games!
hey smarty pants, you will still get Joe Buck!!!
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