The "Sweet Spot" Of The Telecommunication Industry

Main Product/Service                                                                                          Cable Systems are companies that propose the operate of sending stock boob tube signals with a close channel, a coaxial or fiber-optic line of work, into the homes of its subscribers (#1, p. 117). This signal provides television programming, some(prenominal) like that of broadcasting companies, to viewing audience across its go area. More recent expanded areas of wrinkle systems include high-velocity internet connection, digital cable help, and its nigh recent using of video-on-demand (VOD). Producing Income                                                                                          The main way in which cable systems generate their tax is done with(predicate) subscription fees paid by viewing audience to receive their serve (#1, p.174-176). These fees can run anywhere from $30.00 - $100.00 per calendar 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 non relying on cable advertising is imputable much to divers(prenominal) advertising restrictions among networks and a lack of statistical information intimately 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 readily emerging satellite industry. At the close of 2001, both this giants immortaliseed revenues puff up 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 indirect request to get a full essay, order it on our website: Ord erEssay.net

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