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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. "
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?