Why? Some of these states laws are written under the assumption that dealers help customers by creating competitive pricing as well as offering special consumer guarantees and protection.
Would TV networks say the same about their distribution companies: cable operators, satellite and telco companies? Have they been holding down customer fees for TV programming? Oh yeah, we know how successful that’s been over the last decade.
Frequent carriage and retransmission fee battles show just how uneasy TV relationships are. Price inflation for pay TV service keeps climbing.
Like Tesla, TV networks want new or at least complementary business models, and some are dipping their toes in the digital water to see whether this works for them.
Still, we know where the bread is buttered: Broadcast TV networks, for one, have TV stations and increasingly pay TV providers that they count on heavily. And many cable networks get about half their revenue from pay TV providers’ subscribers fees.
In the 1980s, budding cable networks -- wannabe national TV channels -- needed the big distribution system to get off the ground. Multiple system cable operators were born, then satellite companies, then telco companies. But things are changing. Now, just like the broadcast networks, cable networks are looking at other digital platform outlets for growth.
Imagine if all TV networks were forced to have middleman -- like car dealerships. What would be the business plan then?