Bundling Services is Good for Business, Consumer

Earthlink has entered the market of providing television to its customers through its new business arrangements with Echostar (Dish Network) and DirecTV. This is a good move for businesses in this area. I have always disliked having to write three or more checks each month for my TV, internet, and phone service. A company that can provide all three, and is willing to discount the price as you use more and more service from them, will likely see a jump in customers, as well as revenue from existing customers. The bundling will benefit consumers with lower rates, and (hopefully) better service as the competition among rival businesses such as Earthlink and Bellsouth continue to grow and threaten the local-monopoly cable franchise. Eventually "true" competition will cause many providers to lower their rates, while increasing their customer service satisfaction. Hooray for free enterprise!

The original article, "Satellite TV Services, Earthlink Team up" can be seen at the following: http://www.ajc.com/tuesday/content/epaper/editions/tuesday/business_34af29fcc3024135000d.html

Competition Among ISPs Can't Be Bad, Right?!?!

When was the last time you got up in the morning singing the praises of the service you are provided from your local monopoly Cable/Internet franchisee? Never, right? Well, in some major cities the local municipalities are "allowing" ISPs such as Earthlink to set-up and manage, at little or no cost to the taxpayer, wireless internet. So what we have now is competition, a great and necessary thing for the success of a capitalist economy! Then who would be complaining? Of course, it is the local monopoly franchise, customer no-service (We Don't Care 'Cause We Don't Have To) cable and internet providers. For too long they have been given the exclusive right to be the sole provider of tv and internet service for the local community. The lack of competition has given rise to unreasonably high rates for service, and lax (at best) customer service, because, honestly, where else do you have to turn. In a city like Athens you are too far from ATL to receive any good antenna signals, and satellite service, which requires the installation of a dish on your roof, is for-the-most-part restricted by landlords. This situation is similar to many college towns and more geographically isolated areas surrounding large cities.

So the problem has been identified, what then is the best approach for finding a solution? Incorporate competition into the industry. However, the local governments seem to think this means bankrolling portions of the project for the ISP providers, who then, in turn, allow government to "own" the service. I say that if you are going to use my money to pay for the service, just cut out the bureaucracy and let ALL service providers compete in any given market. This will drive down cost, allow for better customer service, and allow people to choose the service that is right for them. Of course this will also mean that the kickbacks local politicians get from the monopoly franchisee will be gone...You didn't think that Charter airs the Athens School/Government Public Access channels just because they love you?!?! No, they do it to remain exclusive providers, and politicians can return to their district saying that they were able to get the cable company to provide "at no cost to the taxpayers" local access channels. Of course this is also untrue, just look at your next cable bill and you will see what is called a franchise fee. This fee is what is going to pay for the cost of the local public access channels.

But I digress.

Obviously competition is the solution to monopoly cable/internet service, but government owned ISP is not the way to go. True competition among business is what drives the economy and innovation. Without it we get into a situation similar to China, where the government decided what ISPs could and could not display during searches. This is not a road we want to see ourselves heading down.



The original article can be viewed at: http://www.ajc.com/wednesday/content/epaper/editions/wednesday/business_342fcae5a1a631230012.html

Doctor Shopping

I found the article discussing the database for doctors to be fascinating. This database, which lists doctors according to their stated race and sexual preference, allows patients to "shop" for a doctor with whom they would feel most comfortable. According to the article, people who see a doctor who mirrors their race and sexuality are more likely to see a visit to the doctor as a positive one. Although the ethical implications of shopping for a doctor based upon their race and sexual preference is somewhat suspect, perhaps even borderline prejudice, the fact that patients are leaving the doctor's office feeling better about the visit, and feeling more comfortable revealing information to a physician is a very good thing. This also means that (hopefully) the diagnosis of the doctor is more accurate given that the doctor has had more information presented to him or her. Unfortunately, as of yet there is no query which lists which doctor was highest ranked upon graduation from medical school, nor which has the fewest malpractice suits against them, or how long they have been in the business of practicing medicine, all of which is far more important than who or what they do in the privacy of their home! Perhaps the database will incorporate those queries into their search, so that people, like me, who care more about quality of care rather than someone's stated sexual preference or race, can find appropriate matches as well.

The Internet and The Music Industry

Since the creation of Napster, the music industry's only thought about online music has been limited to lawsuits against the very people they want to return to their business. This is, of course, a horrible business model. Before the creation of webplaces such as iTunes, and myspace, a potential buyer was forced to travel to a music store, locate a CD, purchase for $20, and (if they were lucky) get one or two songs (out of fifteen) which appealed to them. This is where the cost of business was factored into any given artist and label. As the article correctly points out, an artist would first have to secure a contract with a label, go to a studio and record an album, then tour with a well-known band, establishing a fan base, and then maybe, just maybe, gain enough popularity to become successful. All of this costs a great deal of money, which is initially paid by the label, who then, in turn, passes the cost onto the consumer. Of course this should also mean that the band gets a large percentage for each record sold, right? Wrong! The sad truth is that bands make their "real money" on tour, whereas the price of the record sales go, almost exclusively to the record label. The money to be made for the members of the band comes from the merchandising and ticket sales for concerts.

Therefore, the new approach to releasing a single, or an album through the use of a free downloadable service is an excellent business plan for the members of a band. It will also allow record labels the ability to sign recognizable bands, that is those bands which have already begun to develop a loyal fanbase. This should cut down on the overhead for the record companies, who in turn, should pass the savings onto consumers. Either by cutting the prices for entire albums purchased the "old fashion" way, or by making available the $0.99 downloads for consumers. The second approach actually brought in nearly $1.1 billion in sales last year, and will likely become more embraced by the labels.

It is important to note that the TV and Movie industry has taken, from the experiences of the music industry, the knowledge that embracing the technology rather than suing your fans is the financially better approach. Shows such as Desperate Housewives have begun to allow fans to download the season's shows for a fee. It will be interesting to watch and see how the ad agencies respond to the TV networks decision to allow downloadable programming, and whether or not this will lead to a fee-only approach to TV viewing?



The article, "Music Moves Into An Uncertain Future", can be read at the following URL: http://onlineathens.com/stories/020206/living_20060202017.shtml