 KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
 ·AT&T DSL Service
| Cable threatens increased prices for Ala Carte The idea behind Ala Carte channel options is simple:
Customers choose only the channels they want, and therefore, don't have to pay for channels they don't want, and save money.
There's just one problem: That's not how it will work out.
There's NO WAY the Cable companies would allow Ala Carte pricing to affect profits negatively. My guess is they would actually take advantage of the situation to increase prices dramatically.
Basically, what they would do is increase the price per channel well above what that actual channel costs to provide.... the more indemand or popular a channel is, the higher the price they charge for it... The net result is that Ala Carte programming means consumers get many fewer channels but end up paying only slightly less, or the same, or even MORE depending on what channels they choose.... meanwhile the Cable industries save money on licensing and content royalty contracts.
They already have excuses for "higher costs" on standby to justify price increases for Ala Carte.
I'm all for Ala Carte offerings, but I think there will have to be firm controls in place otherwise it will just become a gigantic rip-off for the customers.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
