Business
Starhub decides to hike cable tv subscription price by $2
By Investment Moats  •  June 30, 2011
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.
  1. They are not adding significant number of new subscribers.
  2. They are paying more to fight for content
  3. They are paying more to fight for retention
  4. They are cutting margins to acquire new subscribers.
Now if  you are a CEO, would you not increase the rates as per inflation to ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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