Tuesday, July 20, 2010
Comcast I Called And Cancelled 3 Months Ago And Am Still Receiving Bills, and Now PAST DUE
I Called Comcast and canceled my account on April 20th, 2010, which was the day before I moved out of that house. That same day I took my Cable Boxes and Modem in to completely close my account. I was informed i was missing a Cable Box, which I never received in the first place. So I called later that day after looking through the house and not finding the box. They told me I could pay a fee of $75 to replace the box. So I went ahead and paid it during that call. I was told it was all taken care of, and never received a letter or anything until June 12th, 2010. This letter stated that my account was PAST DUE for not paying my bill in MAY. So Again I Called and got the runaround until i finally got a-hold of someone who could apparently help me. They looked up the account and told my I only Canceled my INTERNET.. Obviously I canceled the CABLE also since I Paid $75 to do so. So they decided to cancel the amount due and only charge me $45 to AGAIN REPLACE THE BOX.. BUT THATS NOT THE END. On June 25th I Received ANOTHER PAST DUE BILL, ONLY THIS ONE WAS FOR $154. I Finally Got A-hold of someone at the "CORPORATE OFFICE" Who Closed My Account.. NOW JULY 7th I GET A CALL FROM A PROPERTY RECOVERY AGENCY TELLING MY I NEED TO RETURN THE DAMN CABLE BOX I'VE ALREADY PAID FOR TWICE. THEY WANT ME TO EITHER RETURN THE NON-EXISTENT CABLE BOX OR PAY $80 TO REPLACE IT. THEY SAID IT WILL SHOW AS AN $80 DOLLAR COLLECTION ON MY CREDIT..... WHAT THE HECK AM I SUPPOSED TO DO???????
Comcast Cable TV Bait and Switch Houston
Comcast is at it again (with a new twist). Our apt complex purchase our basic cable tv from Comcast Cable. In the last two months we have lost 12 stations from our service, all of the 8 HD local stations and 4 other station disappeared from our programing. Not that one they disappeared but the quality of our picture sucks. Upon contacting Comcast they sent a service tech to our residence to check out our service. The service tech was very polite and when we questioned him about our missing stations he contacted his tech service center who relayed to us that we now had to have a tv set top box
in order to receive these channels. Of course the kicker is that will cost us 8.00 bucks a month more to have what we had last month. This is bait and switch plane and simple. The customer service department told me in a separate call later in the day that they reserve the right to change their programing at any time, so they feel they are within their right to do this and charge more money. I asked if they were planning to reduce the rate to the apt building by the 8 bucks per month per unit for the loss of the service, of course the answer was no.This is blatant Bait and switch...would someone please file a class action lawsuit and sue the pants of these unethical, dishonest, thieves! These folks are the most despicable, deceitful, unethical folks that ever conducted business anywhere. They circumvent all rate hike processes by pulling this kind of crap, and basically have a authorized monopoly issued by the government for their criminal Enterprise, and no one has the balls to go after them, Whats wrong with this picture!
in order to receive these channels. Of course the kicker is that will cost us 8.00 bucks a month more to have what we had last month. This is bait and switch plane and simple. The customer service department told me in a separate call later in the day that they reserve the right to change their programing at any time, so they feel they are within their right to do this and charge more money. I asked if they were planning to reduce the rate to the apt building by the 8 bucks per month per unit for the loss of the service, of course the answer was no.This is blatant Bait and switch...would someone please file a class action lawsuit and sue the pants of these unethical, dishonest, thieves! These folks are the most despicable, deceitful, unethical folks that ever conducted business anywhere. They circumvent all rate hike processes by pulling this kind of crap, and basically have a authorized monopoly issued by the government for their criminal Enterprise, and no one has the balls to go after them, Whats wrong with this picture!
COMCAST Deceptive Business Practices, False Advertising, False Statements
Submitted: Wednesday, July 14, 2010
Last posting: Thursday, July 15, 2010
Comcast Cable
is currently moving SEVERAL of the basic-tier channels, such as A&E, TOON, NICK, DISN, TRU, TnT, SPIKE, FX etceteras to a "digital format". As I understand it, this is being done so that bandwidth can otherwise be freed up on the system for things like higher speed internet, phone service and other services. I get that part of it. What I DON'T GET is why Comcast Cable is LYING to its customers! To wit:
This morning, several channels that WERE in analog format were suddenly missing from my service. In their place was a full-screen message, prompting me that, if I was seeing this message, it meant that I was not ready for the digital transition, and that I would need to contact Comcast to request "equipment". Now, I am seeing this message on a Sharp Aquos 42" with ATSC/NTSC tuner, which means that my television HAS a digital tuner, and IS able to receive digital channels. So, I contacted Comcast via on-line chat...
The direct, simple question was posed; Is Comcast simply moving those channels to digital signal, or are they ALSO ENCRYPTING the channels? The representative told me (and I can PROVE this, I retained record of the conversation!) that the channels were simply being converted to digital, and NOT encrypted. (LIE!) I asked him (Jefferson was his name,) that, if this was true, that I would be able to still receive these channels on BOTH of my Sharp DTVs! I informed him that what he was telling me simply was NOT the truth. He informed me that to receive the channels, I would need a cable box for each television. Then...
His response was to copy/paste a canned explanation of the 2009 FCC Digital Transition Mandate. As anyone can tell you, the 2009 FCC directive ONLY APPLIES to "over-the-air, broadcast" stations. The REASON for this is that analog broadcast stations take up THREE frequencies: one for audio, one for video and one for chromatic data. The FCC directive had NOTHING to do with Cable systems and providers, leaving it up to THEM (Comcast, Time Warner, Cox, et al.) to decide when and how to apply digital standards. But I digress...
I informed him that I in fact, HAVE an FCC license AND an FRN, am A+ Certified in PC maintenance, and have installed C-band satellite systems with both Houston Tracker AND EchoStar descrambler / receivers. I further informed him that the ONLY difference between the cable box and the Sharp(s) was a DESCRAMBLER! PROOF that they ARE encrypting the channels!
I then informed him that what I needed him to tell me was that I could get 2 more cable boxes (which I SHOULDN'T need if Comcast weren't LYING!) at NO CHARGE. His response was that there would be a small fee for each box. BOVINE SCATOLOGY!
I then CALLED Comcast, and went through this entire system of lies, mis-direction, sleight-of-hand tricks and ignorant deceptions yet again, not only with the CSR but also with her SUPERVISOR. In the end, I got her to agree to the two extra boxes at no charge, which she stated she would annotate on my account. As I am currently out-of-town, I will have to wait until TOMORROW to get to their offices to get the equipment. Tonight, I have no HIST, no A&E, no TRU, NONE of the channels that I'm paying their arses for and enjoy watching. (I smell a small credit in the near future...)
Comcast and their Xfinity upgrade can kiss my lilly white arse. They've been caught in an outright LIE. They said NOTHING about scrambling or otherwise blocking these basic-tier channels, only telling us that they were "going digital". Any REASONABLE person would conclude that, if they already owned a DTV, that they'd be all set already. If someone starts a class-action, I want IN!!
Last posting: Thursday, July 15, 2010
Comcast Cable
is currently moving SEVERAL of the basic-tier channels, such as A&E, TOON, NICK, DISN, TRU, TnT, SPIKE, FX etceteras to a "digital format". As I understand it, this is being done so that bandwidth can otherwise be freed up on the system for things like higher speed internet, phone service and other services. I get that part of it. What I DON'T GET is why Comcast Cable is LYING to its customers! To wit:
This morning, several channels that WERE in analog format were suddenly missing from my service. In their place was a full-screen message, prompting me that, if I was seeing this message, it meant that I was not ready for the digital transition, and that I would need to contact Comcast to request "equipment". Now, I am seeing this message on a Sharp Aquos 42" with ATSC/NTSC tuner, which means that my television HAS a digital tuner, and IS able to receive digital channels. So, I contacted Comcast via on-line chat...
The direct, simple question was posed; Is Comcast simply moving those channels to digital signal, or are they ALSO ENCRYPTING the channels? The representative told me (and I can PROVE this, I retained record of the conversation!) that the channels were simply being converted to digital, and NOT encrypted. (LIE!) I asked him (Jefferson was his name,) that, if this was true, that I would be able to still receive these channels on BOTH of my Sharp DTVs! I informed him that what he was telling me simply was NOT the truth. He informed me that to receive the channels, I would need a cable box for each television. Then...
His response was to copy/paste a canned explanation of the 2009 FCC Digital Transition Mandate. As anyone can tell you, the 2009 FCC directive ONLY APPLIES to "over-the-air, broadcast" stations. The REASON for this is that analog broadcast stations take up THREE frequencies: one for audio, one for video and one for chromatic data. The FCC directive had NOTHING to do with Cable systems and providers, leaving it up to THEM (Comcast, Time Warner, Cox, et al.) to decide when and how to apply digital standards. But I digress...
I informed him that I in fact, HAVE an FCC license AND an FRN, am A+ Certified in PC maintenance, and have installed C-band satellite systems with both Houston Tracker AND EchoStar descrambler / receivers. I further informed him that the ONLY difference between the cable box and the Sharp(s) was a DESCRAMBLER! PROOF that they ARE encrypting the channels!
I then informed him that what I needed him to tell me was that I could get 2 more cable boxes (which I SHOULDN'T need if Comcast weren't LYING!) at NO CHARGE. His response was that there would be a small fee for each box. BOVINE SCATOLOGY!
I then CALLED Comcast, and went through this entire system of lies, mis-direction, sleight-of-hand tricks and ignorant deceptions yet again, not only with the CSR but also with her SUPERVISOR. In the end, I got her to agree to the two extra boxes at no charge, which she stated she would annotate on my account. As I am currently out-of-town, I will have to wait until TOMORROW to get to their offices to get the equipment. Tonight, I have no HIST, no A&E, no TRU, NONE of the channels that I'm paying their arses for and enjoy watching. (I smell a small credit in the near future...)
Comcast and their Xfinity upgrade can kiss my lilly white arse. They've been caught in an outright LIE. They said NOTHING about scrambling or otherwise blocking these basic-tier channels, only telling us that they were "going digital". Any REASONABLE person would conclude that, if they already owned a DTV, that they'd be all set already. If someone starts a class-action, I want IN!!
NBC Universal flexes its muscles
Their top priority is the same as ever -- do good work and generate strong ratings. Their second biggest preoccupation is to worry about Comcast /quotes/comstock/15*!cmcsa/quotes/nls/cmcsa (CMCSA 19.01, +0.47, +2.54%) . It could the basis for a new reality show: "What Is Comcast Thinking?"
Comcast has agreed to take over NBC Universal, a unit of General Electric /quotes/comstock/13*!ge/quotes/nls/ge (GE 14.62, +0.07, +0.48%) , pending the approval of the U.S. government. The permission is expected to be a formality.
George Clooney, star witness in fraud case
Hollywood actor George Clooney appears at a Milan court to testify in a fashion fraud case. Video courtesy of Reuters.
NBC Universal must have made a strong impression on the Comcast brass when it reported a 13% jump in second-quarter profit, thanks to powerful ratings and advertising sales in its cable-television networks. Read more about NBC's earnings.
It's a start, anyway.
NBC has had a two-headed existence in recent years. Its news division has run roughshod over its network competition, as "Nightly News," "Today" and "Meet the Press" have all dominated the ratings. But many of its primetime offerings have been maligned, and the network had to steer itself through the murky waters of late night TV, where controversy reigned for many months.
As always, NBC's ace in the hole has been cable. Profits sparked by USA, Bravo and Syfy gained 10%, said Keith Sherin, the chief financial officer of GE.
You can't blame NBC officials if the don't celebrate too much over these good numbers. They must be looking over their shoulders, as the Comcast takeover moves closer to becoming a reality.
The question is: What will Comcast do?
Comcast has agreed to take over NBC Universal, a unit of General Electric /quotes/comstock/13*!ge/quotes/nls/ge (GE 14.62, +0.07, +0.48%) , pending the approval of the U.S. government. The permission is expected to be a formality.
George Clooney, star witness in fraud case
Hollywood actor George Clooney appears at a Milan court to testify in a fashion fraud case. Video courtesy of Reuters.
NBC Universal must have made a strong impression on the Comcast brass when it reported a 13% jump in second-quarter profit, thanks to powerful ratings and advertising sales in its cable-television networks. Read more about NBC's earnings.
It's a start, anyway.
NBC has had a two-headed existence in recent years. Its news division has run roughshod over its network competition, as "Nightly News," "Today" and "Meet the Press" have all dominated the ratings. But many of its primetime offerings have been maligned, and the network had to steer itself through the murky waters of late night TV, where controversy reigned for many months.
As always, NBC's ace in the hole has been cable. Profits sparked by USA, Bravo and Syfy gained 10%, said Keith Sherin, the chief financial officer of GE.
You can't blame NBC officials if the don't celebrate too much over these good numbers. They must be looking over their shoulders, as the Comcast takeover moves closer to becoming a reality.
The question is: What will Comcast do?
At Worst, Dish Can Stick Customers With Jacked-Up Fees
Dish Network is the third largest pay TV provider in the U.S. Dish competes with DirecTV, AT&T, Comcast, Time Warner Cable, Verizon and others in the pay-TV market. TV content producers are currently pressuring pay-TV providers to pay higher carriage fees for programming. Recent examples include Dish Network's recent carriage fee disputes with Disney and with a Fox affiliate station in Charlotte, N.C. We can expect these disputes to multiply because many of the contracts between networks and service providers are expiring in 2010. We forecast a minor downside of 1% to our $26.55 estimate for Dish Network's stock if it pays higher carriage fees while simultaneously continuing to offer free HD channels on a promotional basis. On the other hand, we forecast a 4% upside for Dish in the more likely event that the company is able to pass the fee increases on to its subscribers. Our analysis follows below. Is Yamana Gold too cheap to last? Is $15 a ridiculous target or just around the corner. Click here for all mining recommendations updated daily in Professional Timing Service.
Slump in advertising due to weak economy and rise in internet media is eroding profits for TV networks
Broadcast and cable TV networks have witnessed declines in advertising revenues due to a weak economy and the rise of Internet media. As their profits erode, the networks are trying to compensate by charging higher fees to carriers like Dish Network for carrying their programming. Compared to cable networks, broadcast networks (like ABC, NBC, CBS, Fox) are more exposed to the weak ad market because they currently don't benefit from a second stream of carriage revenues. As a result, broadcast networks have been especially aggressive in pushing for higher fees from pay-TV providers that retransmit their content. Dish can mitigate the negative impact of higher carriage fees by passing on the costs to its subscribers.
As shown in the chart below, we currently expect Dish's subscriber fees to decline slightly over our forecast period, primarily as a result of competitive pressures. If Dish's were to pass the higher costs associated with programming content, this could negatively impact Dish's subscriber growth. You can modify the chart below to see how carriage fee increases impact Dish Network's stock:
Slump in advertising due to weak economy and rise in internet media is eroding profits for TV networks
Broadcast and cable TV networks have witnessed declines in advertising revenues due to a weak economy and the rise of Internet media. As their profits erode, the networks are trying to compensate by charging higher fees to carriers like Dish Network for carrying their programming. Compared to cable networks, broadcast networks (like ABC, NBC, CBS, Fox) are more exposed to the weak ad market because they currently don't benefit from a second stream of carriage revenues. As a result, broadcast networks have been especially aggressive in pushing for higher fees from pay-TV providers that retransmit their content. Dish can mitigate the negative impact of higher carriage fees by passing on the costs to its subscribers.
As shown in the chart below, we currently expect Dish's subscriber fees to decline slightly over our forecast period, primarily as a result of competitive pressures. If Dish's were to pass the higher costs associated with programming content, this could negatively impact Dish's subscriber growth. You can modify the chart below to see how carriage fee increases impact Dish Network's stock:
Tuesday, July 6, 2010
Comcast's NBC Approval Delayed
The Obama administration shows no signs of derailing the first big media merger under its watch, yet the regulatory review of Comcast's deal to buy NBC Universal is likely to extend into 2011, analysts say.
A prolonged review means tough conditions could be placed on the deal. In the meantime, U.S. cable leader Comcast (CMCSA) can't move forward with any strategic plans it has for NBC until the deal is approved, and NBC's owner, General Electric (GE), won't be able to put Comcast's money in the bank.
Way back on Dec. 3, after months of talks, Comcast and GE announced a complex deal that would give the cable firm a 51% stake in NBC Universal. Comcast will pay GE about $6.5 billion in cash and contribute cable channels to a new joint venture. The deal values NBC Universal at $30 billion.
Comcast CEO Brian Roberts, right, and founder Ralph Roberts attended a March Senate committee hearing in their quest to get the NBC deal OK'd. AP
Comcast CEO Brian Roberts, right, and founder Ralph Roberts attended a March Senate committee hearing in their quest to get the NBC deal OK'd. AP View Enlarged Image
Comcast had often stated that it expected approval this year. The Federal Communications Commission, though, paused its review on June 24. The agency asked Comcast and GE to provide more data.
NBC Universal owns a TV broadcast network, several popular cable channels, a major movie studio, 26 local TV stations, a stake in online video site Hulu, a vast content library and more. Besides seeking more data, the FCC hired an outside party
A prolonged review means tough conditions could be placed on the deal. In the meantime, U.S. cable leader Comcast (CMCSA) can't move forward with any strategic plans it has for NBC until the deal is approved, and NBC's owner, General Electric (GE), won't be able to put Comcast's money in the bank.
Way back on Dec. 3, after months of talks, Comcast and GE announced a complex deal that would give the cable firm a 51% stake in NBC Universal. Comcast will pay GE about $6.5 billion in cash and contribute cable channels to a new joint venture. The deal values NBC Universal at $30 billion.
Comcast CEO Brian Roberts, right, and founder Ralph Roberts attended a March Senate committee hearing in their quest to get the NBC deal OK'd. AP
Comcast CEO Brian Roberts, right, and founder Ralph Roberts attended a March Senate committee hearing in their quest to get the NBC deal OK'd. AP View Enlarged Image
Comcast had often stated that it expected approval this year. The Federal Communications Commission, though, paused its review on June 24. The agency asked Comcast and GE to provide more data.
NBC Universal owns a TV broadcast network, several popular cable channels, a major movie studio, 26 local TV stations, a stake in online video site Hulu, a vast content library and more. Besides seeking more data, the FCC hired an outside party
DISH Network has the Lowest Relative Performance in the Cable Satellite Industry
DISH Network has the Lowest Relative Performance in the Cable & Satellite Industry (DISH, DTV, CMCSA, CMCSK, CVC)
Written on Tue, 07/06/2010 - 5:12am
By Chip Brian
Below are the top five companies in the Cable & Satellite industry as measured by lowest relative performance. This analysis was based on yesterday's trading activity as we search for stocks that could be relative bargains.
DISH Network (NASDAQ:DISH) ranks first with a loss of 2.97%; DIRECTV (NASDAQ:DTV) ranks second with a loss of 2.1%; and Comcast (NASDAQ:CMCSA) ranks third with a loss of 1.58%.
Comcast (NASDAQ:CMCSK) follows with a loss of 1.26% and Cablevision Systems (NYSE:CVC) rounds out the top five with a loss of 1.24%.
SmarTrend is bearish on shares of DISH and our subscribers were alerted to Sell on May 21, 2010 at $20.63. The stock has fallen 13% since the alert was issued.
Written on Tue, 07/06/2010 - 5:12am
By Chip Brian
Below are the top five companies in the Cable & Satellite industry as measured by lowest relative performance. This analysis was based on yesterday's trading activity as we search for stocks that could be relative bargains.
DISH Network (NASDAQ:DISH) ranks first with a loss of 2.97%; DIRECTV (NASDAQ:DTV) ranks second with a loss of 2.1%; and Comcast (NASDAQ:CMCSA) ranks third with a loss of 1.58%.
Comcast (NASDAQ:CMCSK) follows with a loss of 1.26% and Cablevision Systems (NYSE:CVC) rounds out the top five with a loss of 1.24%.
SmarTrend is bearish on shares of DISH and our subscribers were alerted to Sell on May 21, 2010 at $20.63. The stock has fallen 13% since the alert was issued.
Netflix Fights Comcast for Video Rental Supremacy
Netflix (NASDAQ:NFLX) is a movie rental company that makes film and TV programming available to customers via mailed DVDs and online streaming, all for a fixed monthly subscription. In the expectation that online viewing will dominate the video market in future, Netflix is currently expanding its online catalog.
On the other hand, cable providers like Comcast (NASDAQ:CMCSA) are fighting to keep their subscribers by building video-on-demand services to stem subscriber losses. Below we compare Netflix and Comcast in terms of their current offerings and strategic outlook. Our conclusion: While Netflix is currently in a strong position versus its cable competitors, the cable industry could benefit from inherent flaws in Netflix’s subscription pricing model.
What favors cable providers like Comcast?
1) Content owners demand maximum profits
Declining DVD sales and piracy are eating away potential revenues and profits for content owners, who must now find other ways to make money. One good example is Disney and Fox’s battle with Dish Network over carriage fee increments. And several studios recently introduced a 28-day delay in making programming available for rental. Compared to rental distributors like Netflix, content owners can generally reap higher profits from cable providers, with their bulk carriage capacity and higher on-demand pricing.
2) Comcast has good studio relationships and enormous buying power
Comcast and other cable providers have been distributing video content over their networks for a very long time and have established strong ties with studios. They can use these relationships to acquire on-demand rights to more content. And Comcast has deep pockets. If it’s willing to pay more for the video-on-demand content that it acquires, it might influence content owners to provide exclusive distribution rights, albeit for a short period of time.
What favors Netflix?
1) Netflix’s pricing is much more attractive than Comcast’s
A Netflix subscription of $8.99 per month allows customers to rent one DVD at a time and gives them unlimited access to movie and TV downloads. If we assume that a typical customer watches two movies each weekend, the $8.99 plan yields an average cost of $1.12 per movie.
On the other hand, Comcast charges $5 to $6 per movie for on-demand viewing of more recent releases. Many consumers seem willing to wait until the Comcast sell-through window passes to order the DVD version from Netflix. Although Comcast does offer some older movies for free, its catalogue is currently less rich than that of Netflix.
2) Customers like a mix of older and newer releases
Netflix provides both older and newer movies and TV shows on DVD. Although Netflix has agreements in place with several studios to delay making newer releases available for rental for 28 days, most customers are willing to wait that long. Moreover, Netflix’s online content is skewed toward older movies and TV shows, and is available to its subscribers for instant streaming at no additional cost. So far, customers seem content with Netflix’s product mix.
Can Netflix sustain its low prices?
As more customers resist Comcast’s on-demand pricing, the company may need to adopt a subscription-based model similar to that of Netflix. That said, the subscription model is not the best way for content owners to maximize their profits.
In exchange for the 28-day delay in renting new releases, Netflix is able to acquire online content at cheap prices, which it passes on to its customers. But will Netflix be able to sustain its low cost of content acquisition in the long term? Mark Cuban, an entrepreneur, has argued that Netflix can’t sustain its low cost base for acquiring content because content owners are likely to demand higher profits. In this situation, Netflix would pass higher acquisition costs on to its customers and lose its competitive edge over cable providers. Below you can see how Netflix’s stock could be impacted by changes in its average subscription price.
On the other hand, cable providers like Comcast (NASDAQ:CMCSA) are fighting to keep their subscribers by building video-on-demand services to stem subscriber losses. Below we compare Netflix and Comcast in terms of their current offerings and strategic outlook. Our conclusion: While Netflix is currently in a strong position versus its cable competitors, the cable industry could benefit from inherent flaws in Netflix’s subscription pricing model.
What favors cable providers like Comcast?
1) Content owners demand maximum profits
Declining DVD sales and piracy are eating away potential revenues and profits for content owners, who must now find other ways to make money. One good example is Disney and Fox’s battle with Dish Network over carriage fee increments. And several studios recently introduced a 28-day delay in making programming available for rental. Compared to rental distributors like Netflix, content owners can generally reap higher profits from cable providers, with their bulk carriage capacity and higher on-demand pricing.
2) Comcast has good studio relationships and enormous buying power
Comcast and other cable providers have been distributing video content over their networks for a very long time and have established strong ties with studios. They can use these relationships to acquire on-demand rights to more content. And Comcast has deep pockets. If it’s willing to pay more for the video-on-demand content that it acquires, it might influence content owners to provide exclusive distribution rights, albeit for a short period of time.
What favors Netflix?
1) Netflix’s pricing is much more attractive than Comcast’s
A Netflix subscription of $8.99 per month allows customers to rent one DVD at a time and gives them unlimited access to movie and TV downloads. If we assume that a typical customer watches two movies each weekend, the $8.99 plan yields an average cost of $1.12 per movie.
On the other hand, Comcast charges $5 to $6 per movie for on-demand viewing of more recent releases. Many consumers seem willing to wait until the Comcast sell-through window passes to order the DVD version from Netflix. Although Comcast does offer some older movies for free, its catalogue is currently less rich than that of Netflix.
2) Customers like a mix of older and newer releases
Netflix provides both older and newer movies and TV shows on DVD. Although Netflix has agreements in place with several studios to delay making newer releases available for rental for 28 days, most customers are willing to wait that long. Moreover, Netflix’s online content is skewed toward older movies and TV shows, and is available to its subscribers for instant streaming at no additional cost. So far, customers seem content with Netflix’s product mix.
Can Netflix sustain its low prices?
As more customers resist Comcast’s on-demand pricing, the company may need to adopt a subscription-based model similar to that of Netflix. That said, the subscription model is not the best way for content owners to maximize their profits.
In exchange for the 28-day delay in renting new releases, Netflix is able to acquire online content at cheap prices, which it passes on to its customers. But will Netflix be able to sustain its low cost of content acquisition in the long term? Mark Cuban, an entrepreneur, has argued that Netflix can’t sustain its low cost base for acquiring content because content owners are likely to demand higher profits. In this situation, Netflix would pass higher acquisition costs on to its customers and lose its competitive edge over cable providers. Below you can see how Netflix’s stock could be impacted by changes in its average subscription price.
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