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July 14, 2018
“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.
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