Big US Firm Declares Traditional Cable TV Model Broken

One of the largest cable companies in the United States has conveyed a message to media companies, its major partners in a decades-old business: The traditional cable TV model is no longer functioning and requires either fixing or abandonment.

Cable TV has become overly expensive for consumers and providers.

Cable TV has become overly expensive for consumers and providers, as stated in an 11-page presentation to investors by Charter Communications.

The presentation emphasized that cord-cutters and rising fees are contributing to a “vicious video cycle.” Benjamin Mullin reported on this for the New York Times.

This presentation comes amid ongoing negotiations between Charter and The Walt Disney Co., the owner of popular cable channels such as ESPN and FX.

Access to these channels will not be available to Charter’s nearly 15 million pay-TV subscribers until both sides agree on the terms of Charter's payments to Disney for carrying its channels.

Charter’s Spectrum TV service is currently without access to the US Open tennis tournament and college football games during a holiday weekend.

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