TV Programming Prices Increase While Subscriber Growth Stagnates

By David Tobia
October 3, 2012

Bernstein Research analyst Craig Moffett predicts shifts in the satellite television model, “as increases in the cost of programming are also outpacing cable or satellite providers’ ability to support them,” reports TechCrunch.
As the satellite television subscriber rate remains relatively static, programming costs have risen 32 percent over the last five years, and continue to rise at a rate of 10 percent per year.
“According to Moffett, part of the reason that per-subscriber programming costs are rising at DirecTV is that subscriber growth is flat to down,” notes the post. “Meanwhile, programmers continue to ask more for their content, with no signs of letting up.”
Moffett says this combination is “a train wreck in the making” and suggests “something’s gotta give.” He believes the change could come either as a rise in price for subscribers, or a cutback in offerings.
Some providers have already begun offering bundles of channels that do not include higher-priced networks like ESPN. This allows customers who are not interested in these channels to pay less while allowing the provider to remain profitable.

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