Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS
CHOICE 3 COMPONENT: SET LIMITS ON THE USAGE OF THE PRODUCT
| No. | SIC | Year | Notes |
| 1 | 4841 | 2003 | Cable customers are complaining their monthly fees are soaring. Basic cable charges have risen 7% a year for the last five years, three times the rate of inflation, driven in part by the cost of sports programming. To solve the dilemma between cable companies and sports networks, a solution would be to allow cable operators to tier sports networks, offering the channels as an extra package at an additional cost to basic cable. However removing Fox and ESPN from basic cable packages would reduce the channels' audiences and cut advertising revenue. |
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