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21st Century Fox CEO: A La Carte 'A Farce'
by Karl Bode 04:25PM Wednesday Dec 11 2013
According to Twenty-First Century Fox CEO Chase Carey, the consumer demand for a la carte TV programming options is a "farce," and existing TV bundles provide all the value consumers need. "It’s a farce" and "a la carte isn't the answer," Carey told attendees of an investment conference this week. "The bundle is still a great proposition for the consumer when you compare it to the a world of $5 lattes and cell phone bills," Carey said. Farce is an upgrade from last summer, when Carey proclaimed a la carte TV to be a "fantasy." In both instances Carey seemed to ignore the fact folks like Carey have spent the last ten years fighting not only a la carte pricing, but any substantive creative price movement on channel bundles and TV content.

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buzz_4_20

join:2003-09-20
Limestone, ME
Reviews:
·ObiVoice
·Pioneer Wireless

How about...

Those of us that brew our own coffee before going to work (less than $5 week BTW), and have $30 a month cell service?

Not everyone spends all day pissing their money away.
There are many people willing to pay for a service, but at cable's current pricing it's a big fat waste of money.

ESP when you can get 95% of that content with $8 a month netflix subscription and a set of rabbit ears.
Zorglub8

join:2000-11-18
Fremont, CA

Re: How about...

Heck yeah. Vote with your wallet. When enough people cut the cord, they will cave in. It's always about the same thing: the money!! BTW, perfectly happy with a pair of antennas, a lifetime subscription Tivo box, Hulu, Netflix and a few Redboxes within 1/2 mile of the house.
textech

join:2009-01-11
Glasgow, KY

Re: How about...

I completely agree. We are a family of 5 and we are all quite happy with Netflix $9, Hulu (free), Amazon Prime $79 yr, with Over the Air Channels (free).

As more folks cut the cord in behalf of choosing for themselves how they will spend their TV Viewing, there will be more content made available. Not only that, it will be the content that people actually enjoy watching. It would quickly do away with the never watched junk that Cable puts on for you.

Too bad people won't make the mass exodus of Cable TV by demanding better choices for better prices. Why pay those money mongrels to force feed you their chosen content of commercial laden junk TV, when you can put yourself in charge by Clicking on the Content you Choose to watch at that moment. Commercial free no less. Not what they forced you to watch simply because nothing else happens to be on. And, they give you the added bonus of 15 minutes of commercials per 1 hour of TV viewing.

CUT THE CORD PEOPLE!
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1

1 recommendation

Re: How about...

A great idea, but it is not possible for those who live where slow dial up, very low speed and low quality DSL, expensive satellite, or expensive cellular are the only ISPs available. The OTA digital ATSC situation has left many with even worse signal reception than they had with OTA analog NTSC. So you end up with expensive satellite TV with bundles.
Papageno

join:2011-01-26
Portland, OR
I wish my TiVo Premiere box (which officially has a digital tuner) actually could tune anything in over the air--it's an utter joke, unfortunately. My TV does a much better job, but that doesn't help me much unless I want to watch live (shudder).

workablob

join:2004-06-09
Houston, TX
kudos:2
Reviews:
·Comcast

It's like Breadsticks and Salad

It's the steak that takes up most of the bill.

The salad and breadsticks are almost nothing price-wise.

So, I choose to only get the steak since I don't like salad and breadsticks.

Does the bill go down?

They will price channels accordingly.

H2 = $10.00
Crap local access channel = $.10

Blob
--
Don't try to follow me, I have a cab waiting. EEEEEEEEradicator!
horseathalt7
Premium
join:2012-06-11

Re: It's like Breadsticks and Salad

Well said.

I'm willing to pay more for quality, but I will not pay
ANYTHING for crap and endless ads.

maartena
Elmo
Premium
join:2002-05-10
Orange, CA
kudos:2

Re: It's like Breadsticks and Salad

said by horseathalt7:

Well said.

I'm willing to pay more for quality, but I will not pay
ANYTHING for crap and endless ads.

Thing is.... the endless ads channels often pay the cable/satellite subscriber to be seen. Just as religious channels do. So you won't be able to get rid of those, and you will end up with a lineup that consists of 30 of the channels you want, PLUS those 50 crap home shopping, infomercial, and religious channels.

And the 30 channels you want, probably will cost you about the same (if not more) as the 150 channels that include all the smaller sub channels that only few watch.

A-la-carte is a nice idea from the consumer point of view, but cable companies will make SURE they rake in the same amount of money, if not more. So maybe you can now choose, but you won't save money.

Most cable and satellite boxes allow you to setup parenting rules, and hide channels from the lineup and guide..... you can use that to your advantage and hide all the channels you don't want to watch. Probably cheaper then demanding a-la-carte, and it will have the same effect.
--
"I reject your reality and substitute my own!"
grabacon9

join:2013-08-21

Re: It's like Breadsticks and Salad

My tv subscription should be enough to pay for the content.

telcodad

join:2011-09-16
Lincroft, NJ
kudos:4

If the cable companies don't offer it, others will

Well, if the cable companies don't do it, virtual MVPDs will:

Big Media Companies Are Paving The Way For You To Cut The Cord
By Dorothy Pomerantz, Forbes - December 11, 2013
»www.forbes.com/sites/dorothypome···he-cord/
Chubbysumo

join:2009-12-01
Superior, WI
Reviews:
·Charter

Re: If the cable companies don't offer it, others will

too bad that the content creating companies force cable companies to buy/sell channels in "bundles", so if they want Discovery, they have to take a shit load of other crap channels with it, without a choice. unless content creators start selling a-la-carte, you will never see it, and the creators will do everything they can to not sell individual channels.
InvalidError

join:2008-02-03
kudos:5

Re: If the cable companies don't offer it, others will

The whole traditional cable is slowly entering its death spiral:
- more people cut channels and services
- cable operators increase rates to compensate
- more people cut channels and service
- more rate hikes on remaining subscribers
- rinse and repeat until attrition starts growing faster than rates at which point the traditional cable model breaks down and the industry is forced to adjust by ditching content providers who refuse to cooperate

This could escalate quickly.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: If the cable companies don't offer it, others will

The problem is they will "transfer the costs" by charging more for Internet. So one day a Cable TV bundle may be $20 for TV but $160 for regular internet. Watch it happen.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Chuck_IV

join:2003-11-18
Connecticut

Re: If the cable companies don't offer it, others will

Agreed.

This is exactly why the cable companies got into the internet business in the first place. They knew the breakdown of their current model was coming. However, since they have the "alternative" delivery method also under their control, they just shift the cost from one service(TV) to the other(Internet).

No money lost. The only way they will see issues is if internet is eventually classified as a utility.

Jason Levine
Premium
join:2001-07-13
USA
That and they will institute caps to "protect against data hogs" - read as "kill Internet video to protect their own video offerings." Switching from Cable to Netflix/Amazon VOD/iTunes/etc won't make any sense if you hit your cap after 3 shows and need to pay huge overage fees.
--
-Jason Levine

telcodad

join:2011-09-16
Lincroft, NJ
kudos:4
said by Chubbysumo:

too bad that the content creating companies force cable companies to buy/sell channels in "bundles", so if they want Discovery, they have to take a shit load of other crap channels with it, without a choice. unless content creators start selling a-la-carte, you will never see it, and the creators will do everything they can to not sell individual channels.

Yeah, that's what this article says:

Rasulo: Online MVPDs Will Have To Pay The Freight
Disney CFO Says Happy To License Content, But Only In Bundle

By Mike Farrell, Multichannel News - December 10 2013
»www.multichannel.com/content/ras···t/147123

telcodad

join:2011-09-16
Lincroft, NJ
kudos:4

And as far as retrans fees go, there's "snow" problem!

The NAB's latest ad regarding ever-rising retransmission consent fees:

NAB on Retrans: There's "Snow" Problem
Ad Touts Value of Local, Availability

By John Eggerton, Multichannel News - December 12, 2013
»www.multichannel.com/distributio···m/147172

EUS
Kill cancer
Premium
join:2002-09-10
canada

They're not fooling anyone

"Thou doth protest too much" comes to mind.

RWSI

join:2012-11-27
Albuquerque, NM

ESP?

The Cable TV does not know me or what I want. I will never sign up with them again until they give
me what I want.
The one size option is a bad business model for any positive growth.

cork1958
Cork
Premium
join:2000-02-26

Re: ESP?

said by RWSI:

The Cable TV does not know me or what I want. I will never sign up with them again until they give
me what I want.
The one size option is a bad business model for any positive growth

Hey, RWSI,
Tell that to that moron CEO of Charter where we only have 2 tiers of internet speeds to choose from now a days!
--
The Firefox alternative.
»www.mozilla.org/projects/seamonkey/

vpoko
Premium
join:2003-07-03
Boston, MA

No, Mr. Carey

No, Mr. Carey, we'll tell you if it's a farce or not, you won't tell us. You and us all know that before too long you'll embrace a la carte and pretend you invented the idea. Between now and then you'll kick and scream, but no one really cares what you think; it's our money.

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

ESPN is

the biggest cost
Chubbysumo

join:2009-12-01
Superior, WI

Re: ESPN is

anything disney is a huge cost. Cut out disney, and there is a huge chunk of your bill gone.

lordfly

join:2000-10-12
Homestead, FL
Reviews:
·SkyNet360

Re: ESPN is

Unfortunately in my household Disney is all we watched and even though I had the Family HD plan with Directv, it made no sense to shell out $45/mo for a couple of channels. I just cancelled them last week without hesitation. I will stick with Netflix, DVDs and Blu-ray for our family fix. BTW - Used DVDs at the Pawn Shop are about $2/each, Blu-rays about $3-4/each. Plenty of entertainment for my family of 4.

Oh I also have a lifetime subscription to Playon.TV. So we get all of our prime time shows as well.

Jason Levine
Premium
join:2001-07-13
USA

Re: ESPN is

Another good resource is your local library. Ours has a good stock of DVDs and you can request any DVD that they don't have so long as one library in the system has it.
--
-Jason Levine
shmerl

join:2013-10-21

Perverted industry

Why is the TV industry so perverted? Every normal service tries to provide what customers want. These perverts on the other hand do exactly the opposite. It's idiotic from normal business perspective.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Perverted industry

Every *competitive* service does, anyway. When you feel you don't feel you have much competition, you also feel that people will take (and pay for) what you choose to give them.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1

1 recommendation

A lot of people in the content industry truly believe that the giant extremely varied 24/7/365 dining buffets of Las Vegas are what people want, even though it may cost $100 per person to enter.

Content producers: "Look you can have lamb chops, grits, pancakes, fruit, salad, pies, cakes, milk shake, steak and eggs, and a turkey sandwich at 3:00am. All for only $100. Is not that a bargin?"

Subsciber: "No, it is not. I cannot eat all of that, nor would I ever be interested in eating some of it. I just want a decent slice of quality blueberry pie, a bowl of vegetable soup, and hot tea. How about $5 for that at 3:00am.

Content producers: "Help!, help!, help!. Evil self-centered consumers are here! Get me an industry paid for thinktank report to prove to them that they really do want 1,000,000 calories at 3:00am for $100."

michieru
Premium
join:2009-07-25
Miami, FL
Reviews:
·Comcast Business..

No room in this timeline

This model is slowly dying into oblivion and it started with the ability to have PPV a system they designed themselves. People will pay on top of a cable bill to watch a particular movie or show and the system they say is nothing but a farce is already real and successful. Customers will end up paying more for content they watch in al la carte but nobody has a problem paying for thing's they want. Many people have a problem paying for something they don't care about. With no commercials and higher quality video the difference is clearly in al la carte.

With the younger population who exclusively use Youtube, Netflix, Hulu, Crunchyroll, and many other video outlets the writing is in stone for the emerging market that will soon be the current user base which the large majority will opt out of having a cable bill. These customers also pay for such services and I average about $20 a month for all my content.

PPV == al la carte.

This will greatly improve the efficiency of the current cable industry and maximize profits. The problems with efficiency is less people within a company which causes job loss. This however is a philosophical issue which brings about the negatives of technology to our ever expanding population. I won't touch the subject here.

Vztechjoe

@verizon.net

Re: No room in this timeline

Not true, it started with DVR service. It made it impossible for advertisers to know how many people were watching their commercials, hence the insane jump in retransmission fees.

michieru
Premium
join:2009-07-25
Miami, FL
Reviews:
·Comcast Business..

Re: No room in this timeline

The DVR was just another nail in the coffin. I still hold my ground that it all started with PPV since it was the first time consumers had a choice of what to watch on standard cable. Packages had no real control since they are bundled and you basically had to watch ads on every channel. Switch to PPV and now you can pay to have a start to finish movie or show for just a couple dollars more. I can take it a step further and say why isn't HBO/Starz bundled with the packages? Why do they get exclusive rights as premium services on top of the highest tiered packages?

To the cable company(excluding Comcast) this does not make much sense. To the content companies however it would significantly drop the actual users who subscribe to their service. We go from 250+ channels to probably 50 or less with any actual content for everyone. That will ripple through the rest of the industry.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Hey Carey....

There's a lot of people who don't waste money on $5 lattes and aren't inclined to waste money on your crap content that they don't want.

Way to come off like a douche. Well, actually there is no "like" about it. Confirmed douche.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
ZipZilla

join:2005-07-09
Ladson, SC

Reality Check, Mr. Carey...

Dear Mr. Carey...

Over 1 year ago, I fired a company you used to own, Directv, because of their idiotic annual price increases. I was paying $100+ per month to watch commercials. No sale. I win, you lose.

Anyone paying for traditional cable or satellite service is throwing money away. And guess what? Millions and millions of people have figured this out. Soon, you will change when millions and millions more cut the cord.
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1

Re: Reality Check, Mr. Carey...

Actually the satellite TV companies have held on to subscribers quite well considering economic conditions, although Dish Network has gone through some serious ups and downs in terms of subscriber numbers over the years. The cable companies are the ones seeing the real serious cord cutting. A lot of people I know quit Cox TV and chose a satellite TV service. They may have kept Cox internet service, but some of them got AT&T or another telco DSL internet/telephone service bundled with satellite TV and are quite happy with the deals they got. There is no U-Verse around here. The cable companies deals are still too expensive. If the apartment builders and owners ever got wise enough to install quality master OTA and satellite TV antennas, Cox would probably see a lot of apartment subscribers change from cable to satellite for TV. Cox's bribes to the builders and owners are just too big to pass up. It is amazing that the newly constructed multiple story hotels can have master antenna satellite and OTA services if the owners choose to, but it is too technically difficult or expensive to do the same for apartment complexes. At least that is what the apartment owners and managers will tell you.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1

Guess what, Chase Carey?

FOX would be one of the first channels I would drop if I had a la carte pricing ... so go pack sand.
dfxmatt

join:2007-08-21
Evanston, IL

Re: Guess what, Chase Carey?

Yep, end fox funding = improvement for the world.

axiomatic

join:2006-08-23
Tomball, TX

To Fox CEO Chase Carey

Hey Fox CEO Chase Carey,

How about you stop insulting you customers. People can think whatever they want to think you overbearing asshole. I realize you are trying to protect your empire but do not forget that it is your customers who hoist you atop your tower of money.
Millenium

join:2013-10-30
kudos:1

Spoiled by Netflix

Chase is right, at least with me. After having Netflix I don't see myself ever paying for commercials again.

Vztechjoe

@verizon.net

Re: Spoiled by Netflix

It's that " no commercials " attitude that's killing tv service and jacking up rates. I never realized that commercials were beneath some people.

OT Guy

@ccra-adrc.gc.ca

Re: Spoiled by Netflix

95% of my purchases follow careful research, the 5% are low cost impulse buys. This means commercials have no impact, beyond the rare case where I hear about a new product to be researched.

So yes, by and large commercials are 'beneath me' and a waste of my time.

My real objection is the creep. Commercials have crept up to occupy a full third of the viewing experience. And that is not even counting the blatantly obvious mini-commercials that are now getting inserted directly into the programming. i.e. the car feature ads in White Collar/The Glades. The same for smart phones.
turls
Premium
join:2004-05-23
Carlinville, IL

ha

Why doesn't anybody understand that Hulu, Netflix, etc are not going to be a long term cheap option when enough people cut cords?