Comment Re:While you are at it (Score 1) 306
Subsidization between channels is actually a lot more complicated than people think. Assume that channel A is a popular station, and channel B is unpopular. Maybe 500,000 people watch channel A during the month and 10,000 watch channel B. Further, let's say that the cable company pays $20/month/subscriber for channel A and $5/month/subscriber for channel B. If you only watch channel B, then it seems like you are getting shafted, since it seems like you are paying $25 to only get $5 worth of benefit.
But the problem is that the denominators typically used to present cost/subscriber does not take into account whether the subscriber watches the channel or not. So in the above case, if there are 1,000,000 total subscribers to the cable system, then channel A charges $20,000,000/month and channel B charges $5,000,000/month. If the channels were a la carte, channel A would charge $40/month to the 500,000 subscribers that want it in order to make $20,000,000 per month (40 x 500,000 = $20,000,000), and channel B would have to charge $200/month to each of its 10,000 subscribers.
So are the channel B watchers paying too much or too little when bundled?