

Will unbundling make cable consumers worse off? - gnicholas
http://www.nytimes.com/2015/01/07/upshot/what-rising-airline-fees-tell-us-about-the-cable-industry.html

======
gnicholas
The author has some valid points, and there may be some consumers who are
worse-off with an unbundled cable system. However, analogies to air travel
unbundling are not particularly apt. The air travel industry has very high
barriers to entry—i.e., FAA regulations, limited number of gates, and very
high capital requirements. There are some barriers to entry in the
media/entertainment space, but they are nowhere close to the barriers to air
travel entry.

When unbundling occurs and it is difficult for new entrants to create new
offerings, consumers may suffer because the suppliers have more leverage than
consumers. On the other hand, if you have unbundling in an industry where new
entrants can come in, the suppliers have less power vis-a-vis the consumers.
If they don't supply the desired unbundled goods/services, then new entrants
will come in and satisfy the demand.

