You do realize you get over 20 stations with TWC for $20 and over 70 for $40. Why would I pay $40 on ATV to get 25???
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Because those prices aren't accurate or truly all inclusive.
For starters, the $20 and $40 are for first time subscribers. You didn't include the rate jumps after the 12 and 24 month mark.
Second, you're missing all the equipment costs. And that to me is the biggest reason to cut TWC/DirecTV/etc. It's not the channel costs, it's the damn equipment costs. I spend $70 on DirecTV now (could spend less). But that's just the channels. Add in a DVR, equipment fee, HDTV access, it adds another $30 a month.
TWC it's $25 a month for the DVR (and no one can live without one now), and $11.25 per box additional (3 more boxes for bedrooms? $33.75 additional).
I'm hoping and praying that Apple has a subscription service, and either offers a cloud like service (like Sony/Playstation) or a DVR. Because this equipment rental or even access fees is ridiculous. It's not the channel costs, it's the ancillary costs to your house that kills it.