Bundling
James Surowiecki, as he usually does, provides a good overview of a topic that many people never think about, and that is bundling in cable pricing. He's right that most people prefer the convenience of bundling and that in an unbundled world, it's not certain that prices just wouldn't be reshuffled to maintain overall profits for cable companies, but in the current environment, where cable subscriptions are still increasing and profits still high, there is an opportunity at the margins for enterprising customers to try to mix and match their own entertainment lineup for cheaper.
As long as they remain a minority, companies won't bother trying to rejigger their prices and packages to catch them. It's not an endeavor for the lazy, though, as it can require buying special boxes, plugging computers into TV's, subscribing to multiple services, etc.
I'm glad that the convenience of bundling still works for most people, though. One of the simple benefits of Hulu is its aggregation model, which is just a form of bundling. It's one reason that even content providers who want to maintain their own online distribution presence should consider joining us, and one reason I think most online sellers with their own storefront would benefit from a simultaneous listing on Amazon.com.