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3min chapter
How Hollywood Drove Its Business Model Off a Cliff
Plain English with Derek Thompson
The Rise and Fall of Cable Television
Cable had even margins of nearly 40% on a weighted average basis amongst the six largest cable companies. When you look at an industries like oil, we look at industries that have much, much larger investment based on what they're trying to bring in on revenue, cable is printing money. The more people that were taking in the $300 cable system, the less churn that you were seeing and the less you had to worry about each one of your single titles performing because there was the security blanket of revenue coming in.
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