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If the price increase is greater (30%) then the customers shed (5-10% I’m estimating), then it’s profitable.
by bluedevil2k 7y ago
If the price increase is greater (30%) then the customers shed (5-10% I’m estimating), then it’s profitable.
- neogodless 7y agoAccording to that TechCrunch article, AT&T only has 1.3 million subscribers left. So they lost more than half. The math is not making sense to me. (Unless they lose money on every subscriber, and were hoping to make it up with volume! Ha!)
- bluedevil2k 7y agoNo, I think they said they have 1.3M subscribers at that price tier and the price increase is only affecting them. And to go back to your original point, each additional customer does create variable costs. At&t has to pay carrier fees for every subscriber. A customer pays $6/month for ESPN, $0.60 for NatGeo, etc. Maybe the old price tier wasn’t covering the carriage fees + equipment + labor to install