If pay-tv companies like Direct TV, Dish, and Comcast have not felt the raft of the broadcasters, they will soon.
This is a little dramatic, but sooner or later, cable networks may be seeing higher increases in content fees. Why? Because according to a Wall Street Journal article, broadcast networks have been relying on cable networks as a source of income for so long, that there is a fear that the networks might be increasing its profits.
The problem is that if cable networks have to keep paying high retransmission fees to broadcast networks, then there only source of revenue is going to keep decreasing. Especially since the cable networks are not seeing a high increase in subscriptions.
I am really interested to see how this will impact the industry later on.
Just an update about paywalls…
Publishing companies like Gannett Co, owner of USA Today and The New York Times Co., owner of – well obviously, The New York Times, are noticing that consumers are actually willing to pay for online subscriptions.
When the originally idea of paywalls came up, most papers were against it in fear that it would keep readers away from the online sites, but it actually did the opposite.
So what’s the outcome now?
Well according to this article, Gannett had 46,000 online subscriptions at the end of 2012, two-thirds of which were new readers. The Times Co last year generated more revenue from circulation than advertising mainly because it “led the way” charging for online access.
Now that papers are testing out paywalls and noticing the success, expect more papers to join the bandwagon and start charging. Hopefully the idea of giving readers a chance to read a few articles for free will still apply to the rest of papers who are preparing to join this trend.