Economics of scale in this instance are not applicable. But they do lower the providers cost. They never pass along the savings. Media companies like this do not decrease prices as output increases. If this were true cable boxes would be free in 2017. Looking around my house I pay for 1 Hub, 1 router, 3 boxes and 4 remotes. My provider just did an “upgrade” now all homes use 1 hub and 1 router per house and x number of “child” boxes. This means the provider is benefiting not the consumer. In fact, if my hub goes out, all my child boxes go out by design. I asked for 4 hubs and no “child” boxes and they said this upgrade is to reduce their cost, not mine. I’m not the only one complaining. My monthly fee is higher than before the upgrade. All these companies care about is power, control and profits. While this deal is considered a “vertical acquisition” it is not bc the media landscape is changing and the lines are more blurred than ever.
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