The Internet created transparency in retail, advertising and travel pricing, driving down prices in all of those sectors—and now it is poised to do the same for cable television, RBC’s lead Internet analyst said Tuesday. His comments came after the news of Apple TV service launch was out.
The development builds on the cord-cutter movement, Mahaney said, referring to people who opt for a la carte viewing options powered by VoD service providers rather than traditional cable bundles. He said content is currently being sold inefficiently, forcing consumers to buy bundles of hundreds of channels. Meanwhile, consumers consider very few networks—ESPN being one of the exceptions—indispensable enough to warrant a price premium.
Read the entire story here.