So, remember how upset you were when Hulu restricted their day-later viewing of new TV episodes to subscribers, and you finally decided to shell out that eight bucks a month for their premium service? Well, it looks like subscribers aren't even getting that anymore. The page for FRINGE says "Subscribe to Hulu Plus to watch up to 3 episodes the day
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No, I don't expect many people have more than 5-10 channels they watched (though in a household with 5 people, those channels might not overlap person-to-person), but my point is that 20 channels costs about 5 bucks per subscriber in distribution rights. Any less than that is even cheaper.
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You cite that 20 channels costs the cable company about 5 dollars (per month, yes?) what is your source for that?
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The article I used is this one. I picked an average of $0.25 per channel, which I figured about right for 20 channels, ignoring ESPN which might as well be premium cable.
According to this article which I just found via the Googles, the top 20 most expensive channels that aren't premium (again, counting ESPN and FOX Sports as premium) average $0.51, but it only gets cheaper from there, with the "industry average" quoted at $0.20, so I wasn't far off in my estimate.
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