Individual Product Pricing Component: Cablevision
Individual Product Pricing Component: Cablevision
Cablevision Systems Corporation is one of the nation's leading media, entertainment and telecommunications companies. Founded in 1973 as a cable television operator with 1,500 Long Island customers, Cablevision currently operates the nation's single biggest cable cluster, serving 3 million households in the New York metropolitan area (Cablevision, 2005). It’s portfolio of operations include live sports, exhibitions, and other entertainment offerings through its New York metropolitan area properties, high-speed Internet access, broadband phone access, and most importantly cable television. Cablevision’s cable television component, Optimum TV, is an essential component to the company. It accounts for one third of the company’s total business and generates enormous revenue for the company (773.5 million last year). Optimum TV provides its New York tri-state area television viewers with outstanding programming and exceptional picture quality, customer service and value.
A multitude of factors can often affect consumer demand and pricing for the products or services that we purchase. Three major factors that can help us explain how consumer demand and pricing are affected are utility, the number and closeness of substitute products, and the elasticity of demand. In this paper, I will analyze these factors as they apply to cable television. I will also describe some additional factors that affect consumer demand and pricing of cable television. In addition, I will suggest strategies to enhance revenue for Cablevision Systems Corporation.
McConnell-Brue (2004), explain that the utility of a good or service is the “satisfaction or pleasure one gets form consuming it” (p. 373). The service that is being supplied fills a need that the consumer has. The satisfaction or pleasure one gets from cable television derives itself from entertainment and the dissemination of information....
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