Cable company and local/network channels pull this stunt at contract re-negotiation time.
Each claims that the other is trying to rip them off by failing to negotiate new rates.
Regardless, the end result is an increase in the cable bill.
I do think that today with the ultimate transition to ip based delivery these current negotiate are more about who gets the content. at&t Com cast Disney etc.
Every major party is seeking content. Local channels that are offered free with satellite providers are important.
Followed by more cord cutting.
That's...an interesting business model.
Regardless, the end result is an increase in the cable bill.
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Strange. Advertisements are the lifeblood of broadcast television. That’s how they make money.
The cable companies and satellite providers collect money from customers based upon the number of channels provided, and number of premium channels provided. The consumer is ultimately paying twice for the provided service, once in the price of products they purchase, and then for the service provided by the satellite and cable providers.
In our area, Dish has started providing (free of charge) HD outside antennas for local over the air stations, and then dropping the local charge from customers bills.
The result is eventually this kind of brinkmanship by ABC, CBS, PBS, and FOX (demand for more money) will result with a decrease in revenue, when the remaining cable and satellite providers do the same and quit carrying the major networks.
As you said, “the end result is an increase in the cable bill.”
Consumers in urban areas have started turned to streaming, and over the air broadcasts with antennas. The only exception has been be rural areas, where the infrastructure doesn’t exist to provide streaming, and antennas don’t have the range needed to receive over the air broadcasts.