Digital Media Helps, Hurts Spending Forecast. Rising broadband penetration again expected to help spur growth in media spending, according to PricewaterhouseCoopers. But lurking next to the numbers like a yin to the growth numbers' yang is the piracy issue. [internetnews.com: Top News]
Yeah, sure, broadband penetration will grow by <insert large number> percent over the next five years, etc. I don't believe it. In contrast to John Robb's belief that big companies will lack pricing power in the coming decade or so, the entertainment and media companies seem to think they have overwhelming pricing power. Broadband just doesn't work for entertainment. It's too expensive. $60 for a cable modem connection from Comcast. Then $25 for a RealOne subscription, $15 for an AOL subscription, $15 for a Giga news subscription, and so forth. All that to be able to sit at your computer desk and be entertained?
Now, let me bactrack a bit. The entertainment and media companies do have some pricing power owing to their monopoly positions.
Posted by Doug Sauder at June 4, 2002 04:01 PM