Quote:
Originally Posted by buckeyesin07
If what you're saying is true, however, it proves my point--if the demand for the BTN were as inelastic as you and Delaney think it is, the BTN should have no problem with going to a sports tier only broadcast. Think about it.
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The fact that we are even having the discussion is proof enough of the inelasticity of the demand. The problem is that there are numerous paths to satisfying the demand.
- Buy the sports tier
- and pay $10-$15 for one channel you want and a dozen MORE channels that you never watch in addition to the 150 that you already don't watch
- Switch to DirecTV or other provider
- Go to a sports bar or a friends house
- which I did while waiting for DirecTV to be installed
- Contact the government and get them to impose your will on others
Obviously, the relevant solution to this discussion is the Sports Tier.
If the BTN is bundled on the Sports Tier, their advertising revenue goes down as they are in fewer homes. The way to offset this is to get a 'share' of the Sports Tier subscription money. But if you are one of the highest-demand channels on the tier, you deserve a much higher percentage of the subscription money. Do you think you're going to get it? Of course not.
Think about it.