Friday, March 10, 2006

How do you want your cable television?

We're already buying our music one song at a time, why not pay for our cable television one program at at time? Yes, let the rumble begin between the cable industry, the FCC, and our elected officials, over bundling of cable channels versus ala carte individual program selection.

The way it is now, a cable subscriber purchases a cable package and gets 50-70, or more, great channels...of which we only watch 16, according to the FCC, yet pay a pretty hefty monthly fee. Sounds a lot like purchasing that CD for full price, but only really liking two songs, doesn't it?

Wouldn't it be great to actually pick your top 30 cable channels for that monthly fee? No more food network if you don't want it, hey, throw in world federation wrestling, if you're into that. Pay for what you watch; no more, no less.
Well, as of this week, FCC chairman, Kevin Martin has changed his mind and is now in agreement that the cable industry should examine ala carte programming choice rather than bundling. Martin says it would help parents purchase better programming for their kids (no more Playboy channel as part of your bundle) and actually lower our cable bill each month.

A USA TODAY/CNN poll of U.S. viewers shows that 54% would prefer buying their cable channels individually, and 43% said they'd rather have the flat fee and get a bundled assortment of channels. Martin sights the fact that expanded basic cable has increased in cost 40% in the past five years, when overall prices for goods and services has only increased 12%. Sounds like the cable industry has had it good for a long time, doesn't it?

Needless to say, the cable industry is aggressively challenging this notion with some intense media relations and government lobbying.
The cable industry says that ala carte would imperil the small stations that don't program the most popular cable shows, and that ala carte would actually drive up the monthly price, not lower it.

Right now, a portion of cable's profit is based on the number of subscriptions purchased for the bundles options. If shows are individually purchased, cable experts say some of those cable programs that are great, but have really small audiences, won't be able to survive. No doubt, that is the beauty of cable television, each program doesn't live and die by its viewership because it's protected in a bundled format.

So before you call your congressional representative to support ala carte cable programming, remember that if others don't purchase the "sewing channel" that you're addicted to, it just might not be on anymore. Or, on the other hand, if hardly anybody is watching the sewing channel, why should it be produced on television?
Maybe it's worth it? Is it to you?

6 comments:

Anonymous said...

I would definitely want to purchase a cable channel. One of the reasons I don't have cable now is because there is so much junk that I just don't want to pay for. I'd rather have the option to just buy the Discovery channel and not have to pay for MTV. It makes a lot of sense, I think.
The real question, before I start talking it up with all my friends and family, is how much would I be paying to be so selective?
If the price is right, I'd definitely consider it.

Sewing channel? I didn't even know there was a sewing channel!

Anonymous said...

Okay- hopefully this comment will stay. I'm using a Mac and sometimes things don't compute.

I don't have cable right now for the same reason- I don't want to pay for channels I will never watch. It would be amazing if I could have the option to pick and choose. The real question is, how much would it cost to only have certain channels coming through?
And how much is bundling really saving us? I live in a hot spot, so I don't even pay for my Internet.

So many questions, so many potential answers.

Anonymous said...

Give me ala carte! I want to be able to pick and choose my cable programming and I'm willing to pay for it, too!

Anonymous said...

The reason I don't own a TV is because I don't want to have to pay for channels that I will never watch. Ala carte programming would be ideal for me because there are only certain channels that I would be willing to pay for.
I think it would become a survival of the fittest to what channel can be the most popular.
My mother and I both agree that we would do it- but at what price? It would be interesting to know how much something like this would cost.
Good post! Please keep us updated.

Anonymous said...

I think individually picked channels would be a good idea.I think it would be revolutionary in the new way of defining our shows, as well as the scope of people's interests. I also believe it would allow more independant start-ups to embrace an audience without being put down.

Anonymous said...

Ale carte is the way to go! Times are changing for the newspaper, music and radio industry, it is time for the television industry as well. I realize that some channels, like the sewing channel, may not be able to stay in business. This is a good thing and it can’t come fast enough. I think it will force programmers to be more creative with the range of markets. It is possible to combine all these specialty channels into just a few channels. Maybe sewers, gardeners and artiest can have their own channel. Possibly these are all hobbies that these viewers have in common, but as of now, they have their own channel that I subscribe to automatically with bundled cable. With ale carte, I have no doubt that programming would be better and maybe even fewer commercials. Ale carte will create huge competition, in order to win-over subscriptions. Parents can choose appropriate channels and for those viewers like me, who hate knowing that they’re paying for a fishing channel, can cast their money somewhere else.