Readers would have remember that I was
talking about changing my cable tv plans to reducing the expense cost in this area. Yesterday we got wind of announcement that Starhub will be raising their cable tv service by $2 per month.
Increasing cost of content acquisition
If you go over to Starhub’s facebook page for the rate increase, you would see a lot of people blasting Starhub for doing this.
I think it’s a natural reaction. But many have failed to see that competition and pricing by content providers have make it difficult to sustain margins by pricing the same way.
- They are not adding significant number of new subscribers.
- They are paying more to fight for content
- They are paying more to fight for retention
- They are cutting margins to acquire new subscribers.
Now if you are a CEO, would you not increase
the rates as per inflation to ......