Price increase to 64.95? Are they trying to make ATT TV relevant?
3 replies (most recent on top)
"Content is NOT cheap"
Something lost on the post-Napster, "sharing", everything on the internet is free generation.
Hint... You're not paying for the physical copy, you're paying for the effort and talent required to create entertainment that people want. The same goes for software.
YouTube TV loses money per subscriber even at the $50 per month number. Content is NOT cheap, but they don't have to pay a dividend every quarter so they aren't forced to be as risk averse as T, they have the freedom to play the long game, along with Hulu, Netlfix , etc...
The whole point of "cord cutting" was to have a cheaper alternative to the cable company.
In most places, you get cable and internet for ~$60-$80/month. Which is not cheaper than having to pay for internet alone, plus a streaming service. Streaming services are becoming more and more pointless as many cable companies allow you to stream from computer or mobile as well.
Do you really think streaming services are going to stay cheap?
Most are priced low to try and get subscribers too interested to quit. After a period of time, prices will ratchet up, losing some subscribers here and there while increasing overall profit. If too many jump ship, they can toss out a teaser rate again. No contract works both ways...
It's called pricing to the market. It's the same business model cable TV used for decades.
By monitoring the cancellations the provider can judge the "stickyness" of a service and adjust the content or price accordingly.
My prediction is eventually the cost of streaming multiple services to get all the content a household wants, plus suitable network service, will get reach cable and satellite levels.