What is the process that cable companies/video providers go through to come to terms on pricing with the broadcasters (HBO, ESPN, Discovery etc etc)? From what i have read these prices are negotiated either yearly or whatever the agreements state.
I work for a company that was bought by another company last July. The new company is slowly going away from our own video service and is heavily pushing for our voice, data to be combined with Direct TV or Dish Network. The reason we are being told is that the areas that the area they took over only provided video service in 3 states and the costs of buying the content is to high for our subscriber base. How do small cable companies/video providers afford this if we are being told we cant?
I think they are actually blowing smoke up our asses but i would like to find out how this works for average to small providers. Some of our management are telling us that the smaller providers might go in as a group with other small providers and negotiate as a group type thing. Another suggestion is that they team up with a satellite company and use their prices. We have only had video for about 5yrs but went through a lot of effort to get it up and running and gaining franchise agreements. Majority of the employees are not very happy with where this is going.
Any info on this process and how small/medium providers work this would be greatly appreciated.
Thanks
cost of broadcasters content
Member #: 20504
Registered: 1996-2001
Posted:
525
Name:
john
Company:
bell system
Occupation:
line crew/construction
Location:
puget sound
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