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Originally Posted by Hell's Child
Deadly serious i'm afraid. Ntl make as little as 4% on DTV which mostly goes on the cost of providing the service (boxes, sending the signal etc)
Sky take most of the money, as they hold the leases on all of the channels, this is one of the reasons it tool ntl so long to gain access to sky sports Xtra as sky were after too much for it.
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4% seems rather low when one considers that the OFT have a say on what prices Sky have on their rate card for wholesale provision of premium channels. Non premium channels, in particular shopping channels, should generate far more than 4% profit for cablecos.
If NTL are not making a profit on DTV then it is rather peculiar that they do not increase the price of DTV packages to customers at the same time as Sky does. Sky increased their prices in January but NTL are not increasing theirs until June. That would suggest that if NTL are only making 4% they would be supplying customers for less than cost price for five months if the Sky rate card changed in January as well.