Question:

If you owned a TV network and charged satellite and cable companies different rates, would it be unfair?

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Suppose I own a TV network. For the sake of argument, call it "Tramp TV" (a sports and live action network). Now then, I am able to negotiate an agreement with DirecTV and Dish Network. Both satellite providers will carry the channel and I charge them $0.18 per subscriber. Later, I negotiate an agreement with Comcast and Time Warner, but I charge these 2 cable companies $0.38 per subscriber.

Would the cable companies eventually discover that the satellite companies don't have to pay as much as the cable companies? Would they find out? What recourse do the cable companies have and what can they do (probably nothing) about it?

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  1. no recourse. two different technologies are used to broadcast the same channel and therefor they are not technically the same so you can change two different prices

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