Comcast uses monopoly muscle to claw back profits from cord cutters
Odd. He always seems to win.
Comcast’s operating profit drops by $5.50 every time a customer cancels bundled television service and goes with Internet service alone. That’s according to a story by Daniel Frankel in Fierce Wireless about some back of the envelope modelling done by Wall Street analyst Craig Moffett. His conclusion is that bundling prevents cord cutting, and I think he’s right. But another way of looking at it is that Comcast – and its mega-cable brethren – are using their monopoly control of high speed Internet service to extract significant rents – profits beyond what a competitive market would allow – from consumers.… More