<i>Cable is cheaper now because of sunk costs, but cable companies are much too fat to innovate at this point.</i><p>I disagree in one respect: cable companies are still highly innovative when it comes to lowering their internal costs. It's not something a customer would notice (well, not if done right) but the technology curve helps them deliver more data bits over the same wire for the same cost, or the same data bits for lower costs.<p>Not that you'll ever see a dime of it, but some very sharp people are squeezing every drop out of their cash cows.