If you have a channel on Time Warner Cable and it isn’t performing so well in the ratings department, you may be quaking in your boots right now, as Time Warner Cable CEO Glenn Britt threatened on Monday to drop the low performing channels or reposition them into a different tier altogether. Now, that sucks if you’re those sucky channels, but for everyone else it’s good news. Let me explain.
You see, the cost to pay ratio just doesn’t add up for Time Warner. In the years since 2008, TWC’s programming costs on a per customer basis have shot up 30 percent while their vide services have gone up another 15 percent. But consumer prices have only increased 10 percent, which may be making customers angry, but it is business after all. Perhaps this explains the $3.95 rental fee.
Britt is quoted as saying this model is “…out of touch with consumers. It can’t continue that way for another 10 or 20 years. We are going to take a hard look at each service. Services that cost too much … we’re going to drop them. Or we are going to put them on a different tier.”
Perhaps this will translate into lower costs for subscribers. At the very least, it should translate into less increases in prices. But most off all, it’s good for your brain. You see, having so many selections, especially lower quality shows that no one watches, is bad for consumers. They don’t have as many choices and as such, they don’t get as much quality for the price they pay. Less is more, especially when it comes to content.
Less of these sucky channels means that the money being wasted putting them up will be reshuffled and funneled into things that actually matter. Imagine if “The Walking Dead” got more funding because “Susie Q’s Cooking With Salt and Pepper” show went off the air. No one would miss the latter and everyone would get to enjoy the former just a tiny bit more. Good business models are once again championed by Time Warner Cable. Hooray!