Quote:
Originally Posted by zantarous
The pricing is everything on these channels, not so much for the consumer but for the resellers like Virgin and BT. They simply are unable to make a profit on selling these services, HD and red button are important seeing as we pay full whack. But the pricing in the what the resellers have raised the complaint about.
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It can be argued they don't have a right to profit on the channels, as long as they aren't making a loss whilst pricing them competitively then there's not a huge issue.
They can make their profit on other services that customers will take with them. Without access to the same service though they won't get the option as customers will simply go else where.
It's the same principle as loss leaders in super markets, they're used to get the customers in, and then you make the money elsewhere.
If you don't have the same services though you can't get the customers in, that's why HD and the red button are more important than being able to profit on reselling the channels.