December 5, 2005

I'll Take ESPN With A Side of SpikeTV!

I can't say I spend too much time paying attention to what the FCC does, but their latest idea is pretty interesting. According to News.com:

Cable TV prices are on the rise, but consumers complain there still isn't enough flexibility in the programming packages offered by cable providers.
That could change if the Federal Communications Commission and TV distributors Cablevision and AT&T have their way. Last week, FCC chairman Kevin Martin told a forum sponsored by the U.S. Senate Commerce Committee, which has been examining indecency on radio and television, that consumers could have more choice in what they view for cheaper prices if operators would sell content a la carte.

According to a new report from the FCC that has yet to be made public, a la carte pricing could actually reduce monthly cable bills for many consumers while also providing more control over what channels they watch at home.

Of course not all networks are pleased with the idea:

And here is where the problem seems to lie. Content providers like ESPN, which is owned by the Walt Disney Company, say that a la carte pricing ultimately costs consumers more because it reduces the reach of certain channels, which decreases advertising revenue. It also increases marketing costs, which result in higher prices that have to be passed on to consumers. Even though the FCC's report supposedly refutes these concerns, ESPN and the NCTA stand behind their claims.

I can see both sides of the argument but still like the idea of only paying for channels I want. What I see happening is that the pricing of individual channels will be priced higher so that you'll waste money if you don't get a package deal. The only benefit is that might drive cable and satellite package prices down in general.

What do you think about a la carte pricing for cable? Leave us a comment.

At News.com