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A La Carte Cable TV Channels?
ryantate writes "I was reading TV Tattle and came across an interesting story in the Washington Post about people who spend less than $30 per month on cable buying a la carte. To do this you need a huge C-band dish, but Sen. John McCain wants to require a la carte pricing on digital cable. Content companies like Viacom are fighting it -- they don't want people to be able opt out of their less established channels. And at least one economist type, this guy in the Financial Times, seems to think we'll end up paying just as much under a la carte pricing. EchoStar is game but says Viacom and others are refusing to go along. "
... but mostly because of consumer stupidity. Basically, people pay the $50/month for basic cable for the 2 or 3 channels they're interested in. Over the past 25 years, enough channels have become available that almost everyone has their 2 or 3 favorite channels that they want to watch and are willing to pay $50 for.
A la carte pricing would have the effect that people would simply buy the 2 or 3 channels they want, pay the same $50 they always did -- because that's what they were always willing to pay -- and any additional channels, which they now get for free, they'd have to pay extra for if they wanted to watch. This pricing scheme would have made send 15-20 years ago when there was still an untapped market for cable television, but in this day and age, cable TV subscribers are so ubiquitous that there's no untapped market that would be willing to subscribe to cable TV because it costs less. Everyone who would subscribe has subscribed and is already ready and willing to pay $50/month for television, and that is what they will continue to pay, even if government regulations change.
The economic types may be exactly right when they say in an a la carte TV world we'd be paying about the same total per month. However, would we end up getting better value in exchange for that same money?
Unbundling channels would be a death blow to to the mega companies. Who-asked-for-that-anyway channels such as VH1 Classics and Nicktoons would simply die because nobody's going to part with pennies just to get that one channel. They wouldn't be able to say "We're giving you 10% more channels, now give us 10% more money!" anymore, which would knock their pricing back into shape.
Furthermore, new players who don't have the resources to launch dozens channels can now just launch one and be on the same competitive playing field. That'd open up the door for "indie" TV companies to come back into play. Right now, a one-network operation such as TechTV really has the deck stacked against it, which was part of the reason why they are being sold to Comcast.
Right now, it's the content makers forcing the "basic cable" model. They're the ones insisting that in order to get their popular networks, you have to take their unpopular ones too, and put them all into the same level of service as they're perscribed for. Wait a second... isn't that the kind of thing anti-trust laws usually stop?
I want to pay only for SHOWS I want to watch. I don't want any more channels-- why should I pay for 24 hours a day of the Discovery channel? 8 of their daily hours are infomercials. And I only watch an hour or two of the remainder, anyway.
I want TV and movies released on DVD the SAME DAY they come out on TV or in the theatre. I'll just pick up what i want to watch at the store, or download it from iShows, or whatever Apple or somebody else comes up with to sell us video.
The problem with this is that people creat favorites lists with a very limited amount of channels on them. Customers have been flipping channels, but only seeing the ones on their favorites lists. Direct TV collects statistics on their customers, and apparently notices this trend. What they have been doing lately to combat this is removing all the channels from the "master list" and then adding them all back on again. This effectively adds all the channels to all the favorites lists. Its a dastardly little trick that makes favorites lists completely pointless. I might as well memorize channel numbers. Its been happening about once a week lately. Its like DirectTV wants to put us all back in the 1980's when the favorites list hadn't been invented yet.
If I wanted to watch channels other than the ones on my favorites list, I would go looking for them. I don't need help finding new stuff to watch. And I don't need help screwing up my favorites list. The cat can do it all by itself.
Even those who arrange and design shrubberies are under considerable economic stress at this period in history.