Twenty Seventh Blog Entry Mon Sept 5th

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Unfortunately programmers that is the broadcast and cable TV networks that own all the channels require providers who owns the pipes that carry/distribute their TV channels to bundle channels. Even in basic cable 70+ channels are bundled that you might not even want but still have to pay for. To make matters worse greedy programmers when broadcast retransmission contracts are up for renewal with satellite and/or digital cable TV providers pressure providers to accept higher retransmission carriage fees. As providers only get to keep a small portion of the revenues they earn as profit and must spend most of it to pay their employees, maintain and update infrastructure, and pay the providers these fee increases would have to unfairly be passed on to consumers. So providers often complain and try to fight back to hold down prices. They should certainly be commended for doing so but of course that does not excuse big cable companies that provide us with TV service from engaging in ISP discrimination online.

Nonetheless it is good of the providers to look out for their customers in these retransmission fights and it would be nice to see some government intervention sometimes in helping resolve these disputes and taking away power from programmers to outrageously jack up prices to prevent future disputes. Another posting will cover broadcast retransmission and place shifting issues in further detail.

 

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