The "Sweet Spot" Of The Telecommunication Industry

Main Product/Service                                                                                          Cable Systems are companies that set up the operate of sending origin boob tube signals by a close channel, a coaxial or fibreoptic ancestry, into the homes of its subscribers (#1, p. 117). This signal provides television programming, often like that of broadcasting companies, to viewers across its go area. More recent expanded areas of cable system systems include high-velocity internet connection, digital cable benefit, and its most(prenominal) recent using of video-on-demand (VOD). Producing Income                                                                                          The main wa y in which cable systems generate their tax is through and through subscription fees paid by viewers to receive their serve (#1, p.174-176). These fees can run anywhere from $30.00 - $100.00 per month depending on the design of the function received. Additional income is also provided through expanded services such as cable modem service (approx. $50.00 per month) and one-time purchases such as VOD and pay-per-view features.         Some revenue is also generated through advertising on cable ne iirks, although this is a much less profitable puzzle out of generating revenue. This lean toward not relying on cable advertising is imputable much to divers(prenominal) advertising restrictions among networks and a lack of statistical information astir(predicate) cable audiences, compared to that of broadcast (#1, p. 184).

Profitability                                                                                  Revenues for the two major cable systems, AOL Time Warner Cable and AT& adenylic acidere;T Broadband dont seemed to be hindered by the recent threats to kale posed by the rapidly emerging satellite industry. At the close of 2001, both this giants memorialiseed revenues comfortably over the $9 one thousand thousand mark, and dont show any signs of slowing down (#7 & #8). In actuality, further expansion and profits seem needful as business ventures, such as the recent proclamation of... If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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