While in theory this makes sense the underlying profit motive of the companies being discussed lead me to believe that reality will not conform to the theory.

While in theory this makes sense the underlying profit motive of the companies being discussed lead me to believe that reality will not conform to the theory. The major cable companies can push upwards of 90% profit margins. If what you posed was true, then wouldn't the cable companies set a maximum percentage for their profit margins (e.g. 30%) and return the gains in the form of reduced cost to the consumers? Additionally, these companies often have their infrastructure subsidized by our tax dollars which further enhances the the actual profits being realized by these companies.