Friday, October 3, 2008

Mutual Broadcast Suicide



In the Kingdom of Terre Haute, Indiana there's restlessness within the broadcast/cable TV systems. Time Warner operates the only cable system in the city limits of Terre Haute. They have about 20,000 customers. WTHI-TV is the number 1 TV station in the market. The TV station's contract with the cable station has expired. The TV station wants just under $80,000/year for the cable system to carry its programming. The cable system says "No thanks."
Result: Half the TV households in Terre Haute cannot receive the #1 TV station. Cable is losing subscribers to satellite TV which carries local TV stations. WTHI loses, Time Warner Cable loses.
Other damage?
My boss advertises on both WTHI & Time Warner Cable. If both media are losing viewers, my boss is wasting part of his advertising budget.
General Tom's take: This is a man made problem. If I owned a TV station, I'd welcome any cable company to carry my act - absolutely free! I'd also boast to my potential advertisers that their message would be plastered over all of these cable systems!
But what do I know?