Friday, September 11, 2009

Comcast vs DirecTV


One of the typical strategies for companies that are having trouble competing in the marketplace is to look for a specific asset they control that has an impact on other parts of the same industry, and using that asset to squeeze their competition.

Comcast "controls" distribution of VS, currently the channel that offers the most NHL broadcasts (especially during the playoffs.) Although VS is almost never in the top 30 channels nationally, Comcast feels compelled to raise the sub fee to over 49 cents a month(!) That is, frankly, insane. VS, as of the NHL playoffs last season, was subbing in at somewhere around 29 cents, which was still a little high even then. DirecTV subscribers that love the NHL liked VS, because apparently ESPN feels that competitive poker and bull riding gets better numbers. Actually in the US, it might, but I digress.

If you are a DirecTV subscriber, do not petition them or complain to them about this issue. This is clearly the responsibility of Comcast to wise up. I cannot blame DirecTV for refusing to pay exorbitant rates for a channel that doesn't pay for itself right now.

Negotiations are still ongoing, with a (preliminary) date of October 1 for a resolution. Hopefully, this will turn into much ado about nothing, but in the meantime, you may hold sympathy for Comcast for being so petty and misguided.