At a big cable industry confab this week, cable bigwigs dismissed concerns that Netflix, Hulu, and other “over-the-top” Internet video services would hurt their businesses.Instead, they fretted about America’s growing poverty problem.
It turns out that cable is so “sticky” that it’s one of the last luxuries that consumers cut when they get stretched. But America’s inequality problem is growing, and there are more and more people who just can’t afford to shell out for those grotesquely huge monthly bills.
Put differently, you can’t (yet) buy the $160/month HD super-package with food stamps.
Two quotes, via Reuters:
Pat Esser, president of Cox Communications: “We have to be sensitive in making sure we have a product that consumers can afford.”
Time Warner Cable Chief Executive Glenn Britt: “There clearly is a growing underclass of people who clearly can’t afford it. It would serve us well to worry about that group.”
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