With all that we talk about online video disruption, the MSOs (that’s cable companies to you and me) are still making bank. The New York Times reports that cable prices have risen 77 percent since 1996, roughly double the rate of inflation. The average customer is now shelling out $60 a month for a cable package, which they only watch around ten percent of the content. Of course, cable companies say that the pay per channel model that consumers crave will end up in higher prices in the end, but I always ask the unasked question: If cable channels can’t survive as pay for play businesses of content meritocracy, aren’t they currently gouging their advertisers for viewers that aren’t really there?
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