FCC Head Supports Ala Carte Cable
MikeyTheK writes "PC Magazine Reports that Kevin Martin, chairman of the FCC, supports ala carte cable.
In a letter to several minority groups on Wednesday, Martin said "While I believe all consumers would benefit from channels being sold in a more a la carte manner, minority consumers, especially those living in Spanish speaking homes, might benefit most of all,". He goes on to argue "Cable companies act as gatekeepers into the programming allowed by the expanded basic cable package, preventing independent content producers from reaching viewers,", citing the example of Black Family Television, which was forced to go online-only because cable operators refused to carry it, even after it reached 16 million homes."
We think we can make a ton more cash by charging for each channel extra. Basically, what we're gonna do is reduce the nominal fee by a good 20 percent, cut channels in half and if you want anything but the propaganda, you'll pay extra.
We think that the average household will want about 80% of the channels they got today, generating about 120-130% of the revenue of today.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Cable companies should say "fine". First channel costs what cable currently costs, the rest are free. The biggest cost to the cable cos isn't carrying all those channels, it's the infrastructure. Does this idiot think that people should be able to buy 1/20th of the channels they have and pay 1/20th the price? It's ridiculous.
Spike TV and one 'o them 'God' channels. Just to keep some balance.
Why do I need to pay for others to have 50 sport channels? The SciFi (et al) channel works just fine for me, I don't want to have ESPN; which by talking to the cable companies is one of the most expenive "free" channels out there.
As a Slashdotter does that mean we like the FCC now?
The problem with a-la-carte pricing is that it makes it impossible for new networks to get enough subscribers to start up. Think about it - how many of us would personally watch LOGO, the Gay/Lesbian Network? Some, but not enough for it to survive without charging an insane amount per subscriber. How about a network like the old TechTV, or even G4? Most of us would, but most consumers wouldn't. Even networks that would appeal to everyone would have a tough time gaining ground once it went into effect. Would you call in to purchase a new network? Not unless it had a show you really, really wanted. You can make an argument that it should be based on who wants each network, and that you shouldn't pay for networks you won't watch, but I'd argue that package programming keeps the price down for all networks.
Television is still mostly paid for by commercials. Any channel not generating much viewership isn't generating much sales. Either that, or the target audience doesn't buy things as much.
Either way, a la carte would end up looking exactly the same...except probably with less variety, since channels that are currently not competing would start.
Of course, I'm with the majority, so it'd be great for me. USA, Cartoon Network, Sci-Fi Channel, and Comedy Central are my channels, and I know that they're all pretty popular. Then again...I wonder what's more popular. It could lead to more of that reality-tv crap infesting my channels. There are already full channels that run nothing else.
Mod me down and I will become more powerful than you can possibly imagine!
If there was a "White Family Channel", the ACLU, the government, and the public in general would demand its removal.
Just because you ran sed "s/White/Black/g" does not make it ok.
-- Will program for bandwidth
The programmers, like Viacom, force cable companies to carry channels they don't want and therefore forced into package deals of today. Remember the brewhaha a few years ago between a satellite provider and programmer, that resulted a crawl text to all subscribers that there faverate channels may be dropped before they came to a deal.
I actually believe the cable companies would like to offer ala cart pricing. The problem is that the sports networks dictate that if they aren't included with every customer, they won't offer service at all. All or nothing. They also charge a ridiculous percentage of the total cable bill per month. Extortionists, it seems.
Companies like BFT that can't get cable traction, should try deals with alternate routes like Live or ITMS. I don't even see why we really need streamed video much anymore, except for truly live stuff - which we can get from over the air broadcasts.
Even news programs I would be just as happy to subscribe to a feed for and get a download that I could watch when I had time.
Having a subscription model also allows for video to be distributed via BitTorrent, really the only model that makes much sense for HD video because otherwise if you ever get a large subscriber base ISP's or servers will start falling over.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
I've never ordered cable or satellite because there are only a half dozen channels I care about. I'll take the 6 channels I like and they can charge me 6 bucks a month. For an extra dollar I'll take the university channels. If they want to charge more, well I will continue to abstain from purchasing their product.
Since I've upgraded to Digital TV OTA, I now get a music video channel, and 8 PBS channels -- amongst the others. I could care less about cable unless they want to give me the product I want to buy. Still I think paying for COMMERCIAL television is retarded, but then I don't buy bottled water either.
Allowing people to subscribe to channels on an ala carte basis may actually improve programming. There are so many channels that are full of unmitigated trash, but get "sold" because they are bundled with channels that have a couple of good programs. Those channels would need to start doing some actual programming, or they will find themselves losing what advertisers they do have.
I'd be happy to pay $1 per month per channel. I'd probably end up getting half as many channels as I do now while paying the same amount, but they'd be the [i]correct[/i] channels. I'd drop 30 channels I never watch and add 2 that I would.
Or, if they want to price the channels competitively, I'd be willing to work with that, too. I'll pay $4 per month for ESPN if it's so expensive, but I'm going to pick it up each August and drop it each January so I can just get college football. At $1/month for ESPN I wouldn't bother.
This doesn't make it hard for new channels to break in, either. Dish Network is always having "free preview weekends" for higher-tier cable and premium content. If you want to launch a new cable channel and get people interested, you might have to (*gasp*) give it away for free and rely only on your advertisement income or your startup capital before you gather a critical mass of viewers. Then, you can add a low monthly fee, and scale it up as your popularity continues to climb. Sounds fair to me.
It doesn't hurt to be nice.
It's "a la carte," meaning "by the menu."
This is all BS and anyone with half a brain knows it. Cable monopolies are not interested in providing consumer choice. If such an "A-La-Carte" system were ever put in place, you'd get 5 channels a month for $60 instead of 200. Sure, they'd be the 5 you want, but would YOU pay $60 for just those lousy 5 channels? They'll kill this idea just like CableCARD...Speaking of, how is that going these days?
- An Anonymous Coward whose native language isn't even French or English
1. The content producers (TV networks) decide what they want to put on and tell the cable companies that it is a take it or leave it deal. If the cable companies puts up a fight they put a scroll in that says Your cable company does not want this channel call them to change their minds on the highest rated shows. They try to force high cost programming in to the lower tiers so everyone that has those tiers has to pay for it. The golf channel did this just before the US Open. It did not work. They are on a high tier package.
2. The cable provider will calculate what the cost to maintain the connection (and some profit and that will be broken out on your bill. Then each channel will be listed.
3. The number of channels will go down. Right now some networks run lower cost channels in the higher tier and subsidize it with a more popular channel. With out that subsidy there would never have been a History Channel for example.
4. The content providers will not let this go through, not the cable companies.
I don't see why it would have to be all or nothing pay-per-channel or pay-for-3-million-channels. Why not a base rate that everyone pays for their basic cable plus a per channel rate to add any number more channels? Right now I have the option of getting basic cable, which lacks ESPN and the NFL Network (yes, I'm one of those people who requires them, folks), Comedy Central, and the Sci Fi Channel, or paying an arm and a leg for a whole slew of channels I really don't care about.
While I realize that this means there's no chance for start-up channels to get a following, I'm pretty sure they can find a way around it if they try. Free/reduced rates for the first few months or starting out on the Net...
Yes, thank you, I'd like your High Speed Internet Access.
Ok, no problem, the half order or full size?
Full size; the one with 3mb/s down 712 up.
Do you need hardware or setup?
Nope.
Sure no problem, anything else?
Yes, I'd also like a few side orders?
Ok go ahead.
The local channel 17, Discovery Channel, Animal Planet, History Channel, Military Channel and AMC.
Anything else?
How much is your ESPN package?
4.95 per month.
No thanks
Would you like to try our HBO package? It's free for the first 3 months.
No thanks
Okay that's a Full size order of high speed internet for 19.95, plus 6 sides at .95 cents a piece. Anything else?
Nope that will do it for now.
Including taxes, fees and internet monitor labor, your total is $76.65.
WTF?!?!
Namaste
à la not ala
it's french and roughly translated mean with.
ala does not mean anything.
I have like 200 channels.
:() and The History Channel. :P
I watch three.
The rest of you can pay for 197 channels of crap, as long as I get my discount rate for having CN, Spike (what? they play CSI and Trek
This sounds like the best idea the FCC ever had.
AKA pay lip service to the feds. "You can get just the Sci-Fi channel for 5 dollars a month! (plus 50 dollars operating expenses)!" "Or get our premium package for 60 dollars a month! Over 9000 channels!"
It is not clear to me that part of the FCC charter should be promoting non-English speaking households in the United States. Foreign language households create problems of assimilation, economic integration, application of law, public services... I have no problem with duel language households or the availability of native language television channels for them.
an ill wind that blows no good
When you get your Red Bushie Dictionary out, you will find that the translation for "A La Carte" is "Excuse To Raise Rates On Consumers While Providing Less Service".
It's in there before "Above The Law".
-- Tigger warning: This post may contain tiggers! --
I don't know or care how anyone else would use it but if I could buy only the channels I want I would have cable TV right now INSTEAD of using an antenna. The few cable channels that I want are worth paying for but I am not paying for every cable channel there is. It just isn't worth it. I wouldn't buy many channels because I don't want much but my bill would be some amount greater than the $0 it is right now.
I work in the billing department at a smaller cable company, so maybe this post is biased. At least it's biased in the direction of truth, rather than ranting consumer speculation. I also used to work as a field technician for the same company, so I am in a position to know this issue.
First, most cable and satellite companies would be contractually prohibited from complying with any such mandate from the FCC, if it were to be announced tomorrow. Viacom, HBO, Universal, Disney and the over-the-air corporations demand carriage of their lesser-known networks in exchange for a reduced rate on their main programming. For example, our customers demand - and we willingly pay - for ESPN and ESPN HD. The cost per subscriber per month is about $14. We also carry ESPN2, at a discount. If we dropped ESPN 2 from our expanded basic tier, the SD and HD ESPN channels would cost us $9/mo per sub. We are currently in month 4 of a 36 month contract at this rate. Thus, we cannot break this portion of the bundling in our lineup for the better part of 3 years.
Additionally, it is a simple fact that forced a la carte offerings would lead to higher customer cost, and reduced quality. Most cable companies continue to carry their basic tier in analog. A la carte analog results in a daisy chain of traps at the pole or pedestal, degrading the signal across the spectrum. A la carte digital requires equipment in customer's homes with remotely accessible security. You can achieve this with CableCards or Switched Digital. The two are not currently compatible, so it's an either-or situation. In all honesty, MY employer wants CableCards to work correctly. When they don't, it generates higher costs in the form of truck rolls, and lower customer satisfaction.
This is to say nothing of the increased cost due to the creation of rate codes in the billing software for each channel, and the corresponding training of 1700 CSSR's on how to use them. It also ignores the time/cost of converting 79,000 video subscribers to an a la carte plan, so on and so forth.
Kevin Martin has a lot of dreams, most of which seem to be based in fantasyland regarding cable companies. I would be happy to have him shadow me for a week to see how these companies actually operate, so he can realize the true costs of what he dreams up.
khasim (12/9/06): In a blind taste test, more people preferred Coke over the Pepsi that I had previously pissed in.
Every year we have to watch as SlashDot continues to be ignored for being "too black".
I scream. You scream. I assume that means we're both acquainted with the problem. We proceed.
http://www.variety.com/article/VR1117970671.html?
Evolution: love it or leave it
I would support Ala Carte cable. It'd love it. That said, I figured I should provide a little perspective.
I was reading the previous issue of Forbes a day or to ago (not the current one the one before that) and they had a story about the guy behind High School Musical and how Disney has made their channel much more popular than it used to be (at the expense of quality and watchability, in my opinion).
The article mentioned that Disney is the 4th or 5th most expensive cable channel, and costs 89 cents per subscriber for a cable company to buy the rights to show. I'm not positive that's right, but it was in the 80s.
This would be fantastic. Look at the quality of programming that HBO and Showtime must produce to keep getting viewers. Now try to watch Spike TV for a few minutes. That's what competition does.
Comment forecast: Bits of genius surrounded by a sea of mediocrity.
I remember when they passed the Telecommunications Act of 1996, and there was all this talk from Congress and the media about this sort of thing. The legislation was supposed to "free us" and let us choose from a wide array of competitive content providers, which would lower prices and generate higher quality content, etc;... What happened? Pricing goes up, while the competition goes down.
How many cable providers are there really? It's the same with Direct TV, et al.
We play the game with the bravery of being out of range
I *need* FSN West... At least between April and October. That's where 90% of the Angels games are on.
Go Halos!
General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
Let's say you like SciFi channel, and so you decide to subscribe to that channel, and only that channel. The countermove is to distribute SciFi's programming across 20 channels. So now Star Trek is on the Gay/Lesbian channel, Babylon 5 is on the White Christians With Short Hair channel, Battlestar Galactica is on the Fake Wrestling channel (as opposed to the other wrestling channel), etc. When you talk about cable, "channels" are an old-tech convenience for categorizing things before we had Tivos. If you make it unprofitable for the cable company to let you categorize things, then they'll stop doing it.
What you really want is ala cart programming, not channels.
I currently get internet access Time Warner Cable with no cable TV service. It is strictly the price that is keeping me from subscribing. If I could get the local channels, Comedy Central, one of the news channels, and the maybe Weather Channel for under $10 a month I'd seriously think about adding that onto my service. But with the current pricing structure, no way.
This would be great for customers, but I do not see this happening anytime soon.
I wish more channels would offer their best ala carte programming online. Let them have their commercials there. Make a good experience for the viewer and they will go for it. Cut out the middle man altogether (unless of course, your cable company owns the internet access too... ;)
On a related note, there's an old story on PBS about a Canadian who became his own cable company. FTFA:
With the exception of local channels, which come from an antenna, all of Andrew's video content comes from a C-band (big dish) satellite receiver (receivers, actually), and is fully paid for. "I buy the channels just like a cable system does or a motel that wants to offer HBO, from the National Programming Service," says Andrew. "And as a result I pay wholesale prices. People don't realize how much of a markup there in is the cable business. The Discovery Networks, for example, cost me $0.26 per customer per month. The IP laws in both the U.S. and Canada say that if I have legal access to this content I can store and use it. And the over-the-air channels, of course, are free."Imagine of the FCC allowed people to be their own cable companies. At $.26 per channel per household, that's a hell of a steal. And that's also how you can see how much cable companies and DirectTV mark up their prices (don't forget, they also get advertising revenues.)
Next step, a la carte showpricing.
Eventually, what's available today on iTunes (or illegally on YouTube or via bittorrent) will be the only way business is done. It's only a question of how long it'll take, and how much it'll cost.
Those who fail to understand communication protocols, are doomed to repeat them over port 80.
In Richard Florida's work we learn that investment in sports is worthless in terms of economic development. By contrast, investment in arts is worth quite a bit downstream. Now, Florida's focus is on comparing cities. But the lessons may extend to cable/satellite too. So if our cable/satellite is effectively investing $14/month/subscriber in ESPN (figure given by others in this discussion), that's equivalent to a city putting most of its civic budget into the new arena for the sports teams rather than into, say, a new playhouse and museum. This means that over time the virtual metropolis comprised of the subscribers to cable/satellite are economically less well off than if the investment had been weighted less to sports, more to the arts. And that means that an alternative without so much investment in sports in the mix would over time have wealthier subscribers, to whom it - and the advertisers using it - could potentially sell much more.
"with their freedom lost all virtue lose" - Milton
I always think ala carte is a great idea until I think about which channels will fail because of losing subsidization. I want more SciFi/History/Documentaries, not more reality TV and crap for "the masses" (or as my wife affectionately calls them, "yellow mustard" folk). Yes, I am an elitist bastard.
With the first link, the chain is forged.
What did this imposter do with the REAL FCC chairman? I can't believe a representative from today's FCC would support something so pro-consumer and anti-corporation. In all seriousness - an ala carte "plan of plans", where you can choose your own set of channels, or a conventional package like today, or a combination of both, is LONG overdue...
As a parent, I know almost every channel has crap on it if you watch enough, and good parenting and education are the best "censorship" tools out there. However, this could be a useful tool for blocking certain channels that I don't want my kids to watch. MTV - gone. Shopping networks - gone. (dirty bastards...)
Unfortunately it will never happen. Its not the cable companies its the networks. Most networks own several different stations and they are bundled together. It's either that or they wont allow the cable companies to carry the channels. The cable companies don't want this because they are afraid of more people going over to satellite so they get the entire package even stations that no one ever watches. The cable company just carries the channels the networks are the ones who really control which ones you get.
About 2 years ago I cancelled my cable. I buy seasons of TV shows on DVD or I just download them via bittorrent. To me, cable is dead.
Meh.
finally, ill be able to have all the discovery/learning type channels, and nothing else!
Yes, I left out the accent aigeu. No, I don't care how that's really spelled. Like it or not (I don't like it, but accept it), English is the Lingue Franca now... and it does not include an accent aigeu. Whine. Also, "a la" roughly translated means nothing close to "with". The best translation is "at the".
You'll have to get used to the lingue franca... English. It includes such "features" as missing the space and accent marks in "ala". Sorry. It's incorrect, I acknowledge, but it is the lingue franca and it's best just accepted.
Don't get me wrong - French is a beautiful language. If I saw its punctuation and grammar disregarded (unintentionally) in poetry or literature I would be pissed. But this is just simple discussion that happens to use a cliche (oops, forgot my accent aigeu again...) from French and does so inaccurately. It's nothing to get worked up about.
It is à la carte
Obligatory link to Wikipedia to inform you ignorant slobs of this transgression is included. You can thank me later. Hrmph.
My apologies. I meant to mod you Insightful.
Please mod parent up.
Why in the name of everything good and true are the parent and the two other previous posts like it (addressing the issue of competition) modded troll? WHY?! SOMEONE PLEASE TELL ME WHY? Seriously. Why? Please. Please. PLEASE.
Please don't use "umm" or "err" or "erm".
Three words. "a la carte" It is French.
..Being British and living in the USA is being a TV niche or minority watcher.
I have often been torn with having to buy a cable package of 300+ digital channels just to get BBC America to see the BBC world news feed once a day (no I don't care about a local TV station covering a local cat stuck up a local tree).
I am also annoyed that I need to get expanded analogue to get the only other 2 channel that I want from cable : SciFi and Comedy Central.
There are many fine series I like to watch on some of the major networks (e.g. FOX) and it pleases me I can get them in HD for free off-air with a $100 set-top box or $50 HD tuner card for my PC.
So I just took the plunge - Major networks for Free over-air in HD, listen to BBC world service while reading Slashdot in the morning (the video feed is too low bit rate to stomach) and waiting on the series DVD's of south park and battlestar to make it to netflix.....
So far I feel good about saving $100 a month - that is until someone tells me a plot spoiler...
The cost of a product has nothing to do with the cost of production. A product's priced is primarily based on what the market will bear. And even more so in a monopoly. Your cable bills will not change because you are willing to pay X each month for cable and the cable company knows that. They don't really care if they sell you one or one hundred channels since you don't watch 1/100th of what you currently receive, they just want as large a revenue stream as they can get and based on your socio economic status they will pick a number that you will object to but pay all the same. The current premium channel don't really cost more than the basic ones, they are just a way for the cable company to appear to give you added value. So at the end of they day you will pay about as much and they cable company will be only too glad to sell you less. BTW, the current practice of bundling was done due to limited technology and simplified billing.
Recently i was in Toronto. I live in Savannah Georgia and have comcast. I have about 500 channels, maybe 3-4 are good. In Canada, there were only about 30 channels, BUT almost all of them were actaually GOOD. Even the Comedy Network (not comedy central) plays funny stuff like Daily Show, Colbert, South Park etc. Then when those STUPID comedy central movies comes on, it cuts too Family Guy , The Simpsons etc would come one. We don't need MORE channels just BETTER ones!! There are too many it takes forever to find anything good on! Jeff
ESPN charges us I believe it's $3.25 a subscriber. The movie channels are even worse. I know this because one of the business that my company is in is cable TV and this is a frequent topic of conversation with our RF guy. We need some form of legislation to cap the price of over-priced channels before ala carte will ever work. One might argue that the free market will drive the price of broadcast content down. I argue that it hasn't managed to do so yet. The content producers have gotten a leg up on the broadcasters as well as the subscribers. We can't charge the subscriber more because they'll pitch a fit. We can't get a cheaper price from the content producers. We basically break even on our cable TV offering. We don't yet have PPV on on-demand. There's more margin in that. We make most of our $$ in Internet and long distance (we're also an ISP and telco).
Be careful what you as for. Ala carte isn't all it's cracked up to be. A critical component is missing.
>> citing the example of Black Family Television, which was forced to go online-only because cable operators refused to carry it,
This reads like an accusation of racism in the article, but maybe cable companies are trying to eliminate racism or at least not reinforce it by not having programming only for certain racial group stereotypes.
I guess spanish-language TV is different because it is (primarily) breaking a language barrier, not a stereotype barrier.
Failing that, so where is my White Family Channel? (Before anyone says it... I don't go along with the notion that every channel except BFT is for whites)
Up next: A-la-carte cable won't work with CableCard! Let's just skirt the issue and push for 'Net Neutrality and commodity internet.
No, I will not work for your startup