Today most content providers bundle their channels together and you have to take them all. As this article points out - that has to end because the prices are out of hand.
One important factor that the article does not point out is the fact that today's middleware and OSS/BSS systems can tell operators exactly how many people are watching particular channels, when they are watching and for how long. They don't have to rely on Neilson ratings or any other factors. They can also use those eye-ball reports to compare channels against similarly viewed channels to see if things are over-priced.
If a channel that costs $.20 per sub is getting the same viewership as another channel that costs $.10 - how do you justify paying that $.20 in a new contract?
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