WHY THIS MATTERS:A pairing with Charter could accelerate Sprint's plans to launch next-generation 5G wireless service, but the benefits to Charter are less evident.
WHY THIS MATTERS:Aside from the obvious synergies associated with a deal between the two programmers – Zaslav said the combined company would control about 20% of cable viewership but less than 10% of the economics, presenting opportunities to increase affiliate fees – the merger could make it easier to offer a separate video package directly to consumers.
WHY THIS MATTERS:Gross margins on video programming for the average cable operator are about $21 per subscriber per month, after affiliate fees and customer expenses, Juenger said, estimating that by 2018, gross margins would shrink to $15 per month per subscriber.