The bargaining power of suppliers is increasing high, with programming costs rising annually. Video programming costs are a major component of CST operator expenses and so margins related to television services are likely to decline.
Several operators have tried to offset these rising costs by adopting backwards-vertical integration strategies by acquiring programming companies, such as the acquisition of NBCUniversal by Comcast in 2011. The acquisition gave Comcast broadcast networks, cable channels, a film studio and other key media assets, giving pricing and content leverage over other cable operators, streaming companies, and telecommunications operators. Piracy and illegal streaming activities will continue to be a problem for content
