Cable Subscriber Inflation

Peter Svensson writing for the Associated Press:

The U.S. subscription-TV industry first showed a small net loss of subscribers a year ago. This year, that trickle has turned into a stream.

I pay Comcast $65/month for Cable Internet and Basic Cable.

I don’t need Basic Cable — I don’t even have a TV attached to it. However Comcast would charge me an additional $5/month for Internet-only service.

That’s right, Comcast would charge me more if I declined a service.

I initially thought it had something to do with Universal Service-style municipal regulations, but now I suspect Comcast wants to prop up its “TV subscribers” number, the way magazines will give away subscriptions to inflate their readership numbers.

I’m impressed a single customer is worth ~$60/year to Comcast to keep them on their subscriber books. Seems high.

Aug 11 2011