Why do cable co charge more for tv than satellite does?

HDTV has demanded a great deal of investment by content producers and broadcasters. StudiOS, transmission suites, archiving, cable and satellite services have all seen increased costs for new equipment.

Broadcasting HD uses about 5 times the data rate of a similar SD channel so bandwidth allocation that will carry 5 SD channels supports just one HD channel.

Apart from the equipment, other less obvious details have changed. HD demands more attention to lighting, costumes and sets with some significant cost increases.

During the transition from SD to HD, charging a premium to receive HD channels is one of the ways to recoup the investments in infra-structure and production costs. As more viewers move to HD, market forces are likely to reduce the premium. In the coming years, we are also likely to see the end of some SD channels with the content offered only as HD. As we reach that point, the HD premiums are very likely to reduce to a minimal amount.

And let's not forget, because they can. As with any other commercial organization, broadcasters are keen to increase profits. If people are willing to pay extra for improved quality, HD pricing will remain higher than SD.