02-07-2024, 06:58 PM
Some more economics. Cable tv relies on a "pure bundling" model: either you buy the whole package or you buy nothing. They did not have to do this. But unbundling would mean those who only wanted sports content would pay a higher price. If you only want the USA, Discovery, and Comedy Central, you should pay nothing. (Actually, given marginal benefits, the cable company should pay you to watch those, but that's a different debate).
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
Streaming has broken this model. Not quite enough imho. But generally, "mixed bundling" will increase consumer welfare. Under many circumstances it can also increase supplier revenue. Imagine, however, the ultimate unbundling where you can subscribe to, e.g., only the Pac-12 network. Still waiting for that one.
