[FeepingCreature]

The economists are wrong about economics too.

That article is an absurdly oversimplified model. In the real world, the networks would find some way to diversify between the $3 and $10 channel offerings, letting them get $3 from the $3 person and $10 from the $10 person.

edit: Correction, they do mention this common and widespread approach... in a footnote. Without saying anything about why it wouldn't work.