Peak Cable

Horace Dediu:

Paying for TV has been a curious consumer phenomenon. There was a time when TV was free to consumers. It was delivered as a broadcast over-the-air and paid for either by commercials (US mostly) or by taxes on viewers (Europe mostly). The consumers were delighted with the idea as it was far better than radio and radio was delightful because it was far better than no radio. […]

And so over a period of about 40 years, watching TV went from free to quite expensive. More expensive even than a family’s communications costs (i.e. telephone service.) That’s quite an achievement at a time when technology diffusions caused huge price reductions in other goods and services. Consider that the TV set used to watch the programming improved dramatically while decreasing in price over the same period.

Monday, 23 March 2015