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Ars Technica: Are the days of pay-TV coming to an end?

Fri, 10/03/2014 - 16:29 -- Eva Prkachin

Are the days of pay-TV coming to an end?

Article by Jon Brodkin for Ars Technica

Programming costs are so high today that even Comcast complains about the expense. What of small Internet service providers who lack the negotiating power of the nation's largest TV and broadband company?

Some of them are dropping channels or exiting the pay-TV business altogether, says a new article in The Wall Street Journal.

"I think the TV model is broken," BTC Broadband President Scott Floyd told the newspaper. BTC stopped offering TV late last year while continuing to sell Internet and phone service.

"The Oklahoma company, which had been serving about 420 TV subscribers, decided it simply couldn't afford to keep paying rising fees to carry a basic lineup of channels including ESPN, TNT, and MTV," the Journal wrote. Floyd "estimated that if the company continued to pass on rising programming costs to consumers and maintained its thin profit margins, by 2016 cable-TV bills would rise to $130 from about $60."

- Read more at Ars Technica