SolveForce Now Offers Real-Time Quoting Tool to search TV, Internet & VoIP phone service providers
(PRWEB) April 25, 2016
SolveForce.com has been rolling out a large campaign offering TV, Internet & VoIP phone (http://www.solveforce.com/) services throughout the US. Now their Real-Time Quoting Tool can search providers of these services effective immediately.
There is a widespread belief in technology circles that bundling of cable TV, Internet & VoIP services will go away now that those products can be distributed à la carte on the internet. The assumption seems to be that bundling is an artifact of another era when distribution was physical. But this reasoning misses the economic logic behind bundling: under assumptions that apply to most information-based businesses, bundling benefits buyers and sellers.
What price should the cable companies charge to maximize revenues? Note that optimal prices are always somewhere below the buyers’ willingness-to-pay. Otherwise the buyer wouldn’t benefit from the purchase. For simplicity, assume prices are set 10% lower than willingness-to-pay. If ESPN and the History Channel were sold individually, the revenue maximizing price would be $9 ($10 with a 10% discount). Sports lovers would buy ESPN and history lovers would buy the History Channel. The cable company would get $18 in revenue.
By bundling channels, the cable company can charge each customer $11.70 ($13 discounted 10%) for the bundle, yielding combined revenue of $23.40. The consumer surplus would be $2 in the non-bundle and $2.60 in the bundle. Thus both buyers and sellers benefit from bundling.
To learn more about SolveForce's TV, Internet & VoIP phone (http://www.solveforce.com/services) services, visit SolveForce.com.
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