CEO Tom Rutledge sports makes up more than half of the wholesale price of its cable bundle and while the company would like customers to be made whole while sports is dark, “Now we have a structure where its all bundled together and tied together contractually and we have very little control over it.”
“We would love to see our customers be relieved if they can be,” he said. “Ultimately it’s the athletes who are getting the money and … someone has to give up their money and give it back to the consumer and that has not happened yet.” Rutledge made the comments on a conference call to discuss the giant cable provider’s latest quarterly financial results.
This week New York State Attorney General Letitia James asked big major cable and satellite providers to cut or eliminate those charges while the“We’ve talked for years about the reality of programming costs and how sports drive the bulk of that,” he said. “If you look at the average cost of programming of $60 a month [the wholesale cost Charter pays], if sports was not involved in the negotiations … that cost would be less than half of what it is.
Those who aren’t sports fans have always subsidized those who are through cable bundles. This practice must end. It will drive down player salaries and owner profitability.
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