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ms.akkineni
ms.akkineni
3/27/2016 8:03:38 PM
User Rank
Platinum
Re: Mediacom Programming Cost
Ultimately companies have to pass those cost increases on to consumers...

Absolutely !!! That is the case with any industry / domain / business. Lately we hear this very frequently. I wouldl like to quote a very similar example but not exactly in context of the main topic.

Lately there was a news about a transit union strike in NJ and finally they settled into an agreement with managemnet/ The bottom line is for management to satisfy the union with their agenda of expectations, there will be a percent increase in transit fare for customers. There was a significant fare increase that took place several months ago. This happens to be the case in general.

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ms.akkineni
ms.akkineni
3/27/2016 7:42:46 PM
User Rank
Platinum
Re: Classic problem in PR
@vnewman:

I think you can liken the situation to how people feel about paying school taxes when you have no children.  

I like your analogy. I exactky know the feeling.

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faryl
faryl
3/26/2016 10:00:56 PM
User Rank
Platinum
Re: Classic problem in PR
It will be interesting to see how that shakes out for their customers and if that approach impacts the amount of cord-cutting. Every once in a while there seems to be a news (using the term loosely) story about how customers are outraged because they can no longer access AMC or FX or other channel right before the season of some popular series or a sporting event is about to begin.

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Mike Robuck
Mike Robuck
3/25/2016 4:54:20 PM
User Rank
Author
Re: Classic problem in PR
He made those remarks at a cable event, so he's preaching to the choir, but in his case he probably would say the same things to a mainstream news outlet. Programmers aren't going to give their content away, especailly if they have web portals of their own, but at some point smaller cable operators are going to start to bail on video services. Cable One and Suddenlink decided to forgo Viacom's programming. 

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vnewman
vnewman
3/25/2016 4:07:47 PM
User Rank
Platinum
Re: Classic problem in PR
Whether you agree with him or not, Rocco has a strong financial backgroud so his position and opinions make more sense when you think of it in that framework.

I think you can liken the situation to how people feel about paying school taxes when you have no children. 

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faryl
faryl
3/25/2016 12:37:07 PM
User Rank
Platinum
Re: Classic problem in PR
Agreed. I don't disagree with what Rosso is saying - but I do think that there is an issue getting overall public support/sympathy. The average consumer doesn't think about what's behind the costs; they just care about how it hits their wallet.

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elizabethv
elizabethv
3/25/2016 7:07:13 AM
User Rank
Platinum
Re: Classic problem in PR
But I think that's the point - realistically, the business does have to make a profit to survive. And I'm as anti-corporation, anti-CEO as they come. But I do understand if the business isn't making a profit, it doesn't exist. And while initially, when a customer was paying $23 for service, the actual cost was only $4.50. Now, even though the average price to the consumer as increased 3-fold, the average cost of the service to the company has increased 10-fold. Those numbers don't compute. And the problem is it's the cost of paying the people who are relinquishing the rights to the cable company. And while Rosso admits it's the fault of the cable company, I don't know that's entirely the case. Either way, there is a real problem that exists, that affects the largest portion of our society. And the FCC seems wont to address it at all.  

 

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dmendyk
dmendyk
3/24/2016 3:16:48 PM
User Rank
Platinum
Speaking out
It's good to hear from Rocco -- definitely someone who knows the business he's in and is up front with his POV (in other words, the opposite of most CEOs). That said, it's beyond time for video service providers to shed the role of passive middleman and attack the cost issue aggressively. Some of the skinny bundles are a start, but even those are gamed to appeal to a very limited subset of subscribers.

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Writeran69258
Writeran69258
3/24/2016 1:37:45 PM
User Rank
Steel
Re: Mediacom Programming Cost
Ultimately companies have to pass those cost increases on to consumers, which drives up the price of the service and spurs more cord cutting. Commisso noted that Mediacom has lost about 45 percent of its initial video subscriber base. He says the comany continues to be profitable by launching broadband, aggressively pursuing business services, and adding phone service.

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faryl
faryl
3/24/2016 1:00:50 PM
User Rank
Platinum
Re: Classic problem in PR
Yup. I think it's a bit unlikely that end consumers are going to have much sympathy for MediaCom's rising costs.

As Mike said, end-user costs keep going up too.

And we consumers generally care more about what the impact is to our wallets than to the profit of some company!

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