“Costs for content producers and networks continue to rise faster than the general inflation rate,” said Brett Sappington, senior director of research, Parks Associates, in an e-mail interview. “As long as that happens, they will face pressure to increase the amounts that they need from their distributors to cover those costs.”
He noted that online services--often called “over-the-top” services because of how they arrive on another company’s broadband connection--themselves contribute to some of this inflation with motion picture-level budgets for some exclusive series.
From the article "As cord-cutting prices rise, here's what you can do to keep costs down" by Rob Pegoraro.
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Beyond that, AT&T also gets revenue by licensing those movies and TV series to other pay-TV providers and subscription Net TV services such as Netflix. "Video and entertainment will remain the key dri...
