In the tug-of-war between programmers and distributors of pay-TV services, a director of a major channel group states his position on how to surmount the main stumbling-block ? pricing of content. ?The view we programmers take is that it?s unfair to expect us to accept a reduction in current revenues,? he says. The solution he proposes is apparently simple: Total revenue is held steady provided the subscriber base expands by 15%. By the end of the period of growth, the cost of programming per subscriber would have fallen by 15% for distributors that achieved the target.
New model
