DirecTV and Viacom Agreement Problem | Jeff Kagan Tech Analyst

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Jeff KAGAN

Tech Analyst

     

This is of course good news for the short-term, but it does not solve the longer term problem that will continue to jump up and bite us all, year after year until it is fixed.

The television business is broken. It needs a complete overhaul.

Companies that deliver television to customers continue to raise prices year after year. Every ten years customers pay roughly twice as much.

That is because the networks hold these companies hostage and continue to demand more every year.

The problem is customers want and expect a decrease in price and are continually disappointed. Traditional players are actually removing lower cost options as well.

Today there are more competitors than ever before. Today we have cable television companies, satellite television companies, telephone companies IPTV, and more is coming. We expect Google TV and Apple iTV later this year.

In addition customers are finding new ways to get fifteen to twenty free television channels with antennas. This is actually growing quite quickly.

This is new and extreme pressure in the television industry. The industry may be preparing to go through a big transformation over the next few years just like the wireless industry did with Apple and Google.

Thank goodness some companies like DirecTV, DISH TV, Time Warner and Hargray are stepping up and pushing back. They have put themselves on the customers side of the line.

When they take a stand, customers should be patient. This is the only way for customers to win.

Congratulations to DirecTV and Viacom for reaching this deal. It was expected. It always happens. But we still need to fix the larger problem before the industry is hurt longer term.

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Please attribute to Jeff Kagan, Tech Industry Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Industry Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
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Phone 770-579-5810 Email jeff@jeffKAGAN.com

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