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The High Price Cable TV 'Cartel'
Lawsuit pushes for a la carte channel choices...

A new lawsuit has been filed against most of the major cable operators and broadcasters, arguing that the companies form a "cartel" that consistently violates federal antitrust laws to keep cable TV prices high. The suit is pushing for "a la carte" cable TV pricing, or the ability to purchase channels individually instead of being forced to buy channel bundles.

quote:
The complex web of contractual arrangements among service providers and networks amounts to a monopoly or cartel that has "deprived consumers of choice, caused them to pay inflated prices for cable television and forced them to pay for cable channels they do not want and do not watch," Blecher wrote in the complaint filed on behalf of cable subscribers in several states.
This comes as the FCC is considering rule changes that would force cable operators to offer individual channels.
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In 2004, the FCC issued a report based on cable industry data that claimed "a la carte" cable pricing would raise prices. They then released a second report in 2006 that contradicted the first -- saying customers could see their TV bills fall by as much as 13%.

While the cable industry continues to argue that a la carte pricing would cost consumers more, this is an industry that also insists price hikes are actually price drops.
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FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 edit

1 recommendation

FFH5

Premium Member

Lawsuit at least names the content providers .....

.... which are the main cause of high prices for cable and satellite TV costs.

The lawsuit names the worst offenders in the bundling of unneeded channels that nobody watches - the content providers. Any attempt to force a la carte will fail if there are no sanctions on the content providers and only go after the cable companies like Martin from the FCC is trying to do.

The companies named in the suit are NBC Universal Inc., Viacom Inc., The Walt Disney Co., Fox Entertainment Group Inc., Time Warner Inc., Comcast Cable Communications Inc., Cox Communications Inc., The DirecTV Group Inc., Echostar Satellite LLC, Charter Communications Inc. and Cablevision Systems Corp.

Ralph22
@comcast.net

Ralph22

Anon

Re: Lawsuit at least names the content providers .....

Make no mistake - the purpose of this lawsuit is not for the common good, but for some money-hungry, overzealous barristers to get their names in the paper, and maybe make a few sheckels. And the AP, with their ultra-liberal anti-corporate attitude, gives them what amounts to little more than a slipshod press release. We don't know, for instance, what negotiations took place before this suit was filed, or what good faith efforts were made to reach some kind of accommodation or understanding.

Sue now, get publicity now, ask questions later.

What no one realizes is that price increases are largely due to sports coverage, and specifically ESPN. This, really, is what you are paying for.

An argument can also be made that by bundling these channels, you ensure these channels survival. Yeah, you may not watch Lifetime or Versus or HGTV. But, guess what, someone else does, and who knows, the Next Big Thing may come from one of these channels.

Bundling keeps these fringe channels available. But, just like in the supermarket where only products that move stay on the shelves, only the channels that enough people care about stay available. And like at the supermarket, competition is fierce for one of those very limited, rare slots.

I think it is always a good idea to keep the cable companies and providers on their toes and remind them of who pays the freight. This to me is not an effective or good-faith way to do that.

Now if you'll excuse me it's Saturday night and my boys are at the front door so I'm gonna wrap up here.
majortom1029
join:2006-10-19
Medford, NY

majortom1029

Member

hmm

Why is verizon not included in this. In a lot of cases they are actually more expensive then cablevision . So why arent they included in this?
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl

Member

Re: hmm

Not a large enough TV foot print, plus then you've got Verizon's deep pockets involved as well. Not that the current cast of characters is anything to sniffle at.
lew_jean
join:2005-05-13
Marietta, GA

lew_jean

Member

Let me pay for what I want

Why should I have to pay for the shopping channels, sports channels, all the other channels I do not want or care for and lets not forget all the music channels.

we may watch about 15 channels it that much

Jmartz0
join:2000-07-20
Tenafly, NJ

1 edit

Jmartz0

Member

Re: Let me pay for what I want

Just think about it:

Everyone SHARES the cost of channels, even channels they don't watch.

A La Carte... 1/4 the number of people share the same cost (prices wont come down)... so that means the cost for the channel will increase to maintain the same revnue... so you're going to be paying the same, if not more, for LESS.

And, a lot of channels will go out of business if people don't subscribe. So you will have less to chose from, at a higher price.

It doesn't make sense to do a la carte. I prefer the packages, if Cable wants to do that, then give people a choice... people who want A La Carte can have it... but I want to keep my programming bundles.

swhx7
Premium Member
join:2006-07-23
Elbonia

swhx7

Premium Member

Re: Let me pay for what I want

The only way ala carte would help subscribers is if all the channels were priced the same. The same as each other, that is, regardless of popularity. That way, the cablecos would make less profit as a percentage on more popular channels (because their payments to content providers are higher) and more on less popular channels. So, on ESPN and HBO they would make pennies or take a loss; on golf channel they would make more. But with larger volume on the popular channels it might almost even out.

This would be good for subscribers because it would provide an incentive for the cableco to keep the smaller channels available; and they would have to keep the bigger channels to keep customers.

If they have to offer ala carte but prices are not required to be the same for every channel, they will charge according to demand, and drop less-watched channels, and cable will descend to the lowest common denominator - just sports, big Hollywood movies and those so-called "reality" shows.
Ahrenl
join:2004-10-26
North Andover, MA

1 edit

Ahrenl

Member

Re: Let me pay for what I want

Or what they pay to content provider's could be tied to the number of subscribers selecting a channel. {shock} Then the providers could set the rates to what the market would actually bear, and comcast would rake some off the top for maintaining the infrastructure.. Sounds a little too free market though.. :P
bamabrad
join:2006-01-27
Port Orange, FL

bamabrad to Jmartz0

Member

to Jmartz0
This type of business model is going the way of the dinosaurs-wait and see!

Jim Gurd
Premium Member
join:2000-07-08
Livonia, MI

Jim Gurd to lew_jean

Premium Member

to lew_jean
said by lew_jean:

Why should I have to pay for the shopping channels,
Actually you don't. The shopping channels pay the cable companies to carry them. I can live with that if it brings down the monthly fee.
travelguy
join:1999-09-03
Bismarck, ND
Asus RT-AC68
Ubiquiti NSM5

travelguy

Member

Re: Let me pay for what I want

said by Jim Gurd:

said by lew_jean:

Why should I have to pay for the shopping channels,
Actually you don't. The shopping channels pay the cable companies to carry them. I can live with that if it brings down the monthly fee.
You're making the same mistake lots of people make - assuming that what a cable or sat companies pays (or receives) for a channel has anything to do with how they price a channel or package a channel.

Channels and channel packages are priced by what people are will to pay - not by what they cost the distributor.

marigolds
Gainfully employed, finally
MVM
join:2002-05-13
Saint Louis, MO

marigolds

MVM

Re: Let me pay for what I want

said by travelguy:

Channels and channel packages are priced by what people are will to pay - not by what they cost the distributor.
Except for basic cable (where the shopping channels are carried), which by law must be priced according to the cost to the distributor.
Since basic cable is the only package that a cable provider can force you to carry, this is an important aspect.
travelguy
join:1999-09-03
Bismarck, ND
Asus RT-AC68
Ubiquiti NSM5

travelguy

Member

Re: Let me pay for what I want

said by marigolds:

said by travelguy:

Channels and channel packages are priced by what people are will to pay - not by what they cost the distributor.
Except for basic cable (where the shopping channels are carried), which by law must be priced according to the cost to the distributor.
Since basic cable is the only package that a cable provider can force you to carry, this is an important aspect.
Interesting - given the large number of shopping channels on most basic tiers, I'll bet the law was written to ignore those... Still - all these people who think ala cart is going to reduce their cable bill are in for a rude awakening.

The industry is built around average revenue of over $50 per customer. The huge capital investment requires that kind of revenue - not just the program providers.

marigolds
Gainfully employed, finally
MVM
join:2002-05-13
Saint Louis, MO

marigolds

MVM

Re: Let me pay for what I want

said by travelguy:
said by marigolds:

Except for basic cable (where the shopping channels are carried), which by law must be priced according to the cost to the distributor.
Since basic cable is the only package that a cable provider can force you to carry, this is an important aspect.
Interesting - given the large number of shopping channels on most basic tiers, I'll bet the law was written to ignore those...
The law does include those. The problem with the law is the franchise authority is responsible for enforcing the provisions. I've never heard of a state enforcing this provision, and municipalities only rarely enforce it. It is not that uncommon for the price of basic cable to decrease in municipalities that do actively monitor basic cable prices (and the companies are required to turn over the information in aggregate).

mrfuzzy
@comcast.net

-1 recommendation

mrfuzzy to lew_jean

Anon

to lew_jean
So if you bought your fifteen channels you watch say at a reasonably price of $5 per….. That’s $75.... Now for *extended basic* (80 channels) generally goes for $53

BuriedCaesar3
It's Not Polite To Stare.
join:2004-03-27
Richardson, TX

BuriedCaesar3

Member

Re: Let me pay for what I want

$5 per channel? Still not worth it.

Try $2-$3 max per channel. That might entice me to consider getting cable. Maybe.

Then again, taxes and fees and whatnot else they want to try to tack on below the line will still probably push it close to $5 per channel anyway.

What am I missing by not having cable? Not much.

brandon
Some truth included in this post.
Premium Member
join:2003-03-31
Ocean Springs, MS

1 edit

brandon to mrfuzzy

Premium Member

to mrfuzzy
said by mrfuzzy :

So if you bought your fifteen channels you watch say at a reasonably price of $5 per….. That’s $75.... Now for *extended basic* (80 channels) generally goes for $53
Ah, but what about me who watches MSNBC, CNN, Comedy Central, and Fox on rare occasions? My bill just went down to $25. And if it's cheaper than $5/month, then my bill goes down even more.

The FCC is requiring them to offer a la carte...not necessarily making it the only option. Thus, bundlers could still save if they want 15 channels, and those of us that want 5 could save as well. No one seriously watches the 80 channels on "extended basic."
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl to mrfuzzy

Member

to mrfuzzy
Using C-band as a guideline MOST channels will be MUCH less than $5's.

marigolds
Gainfully employed, finally
MVM
join:2002-05-13
Saint Louis, MO

marigolds

MVM

Re: Let me pay for what I want

said by Ahrenl:

Using C-band as a guideline MOST channels will be MUCH less than $5's.
C-Band is not a good pricing good for future a la carte cable. The pricing model is based on the assumption that there is a small number of c-band customers who will not subscribe through other means (because they already invested in a big dish).
Essentially, c-band is subsidized by everyone else.
clickie8
join:2005-05-22
Monroe, MI

clickie8

Member

Re: Let me pay for what I want

You can use C-band pricing as a model to find a relative relationship of what channels cost, but you can't ignore that there are some substantial costs attributed to running a cable TV or satellite "head end in the sky" system. If a la carte pricing becomes a reality, cable and satellite customers won't get around those costs.
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl to marigolds

Member

to marigolds
So C-band is subsidized by everyone else, because their customers are locked into the service through the large up front costs? Sense, that does not make.

If anything you'd think that cable a-la carte would have to be lower, otherwise, why wouldn't I switch to C-band?

marigolds
Gainfully employed, finally
MVM
join:2002-05-13
Saint Louis, MO

1 edit

marigolds

MVM

Re: Let me pay for what I want

said by Ahrenl:

So C-band is subsidized by everyone else, because their customers are locked into the service through the large up front costs? Sense, that does not make.

If anything you'd think that cable a-la carte would have to be lower, otherwise, why wouldn't I switch to C-band?
You wouldn't switch to C-Band if cable a la carte was more expensive because you have to shell out a ton of money up front and you have to have room for a big dish (which is not covered by the same FCC regs that allow small dishes).

The assumption is that c-band subscribers have highly elastic demand for individual channels. When they have paid such high upfront costs, they will not tolerate significant increases in the cost of an individual channel and will instead drop that channel for the free channels.
Since the group is so small, there is little revenue to be made in increasing their channel cost, or even in bother to lock them out of a channel. If there were more of them, then it might be worth it to develop a higher revenue pricing model.
Instead, it is a group with small numbers who are not willing to spend very much, but will be pretty vocal when they get cut off.
Solution: Leave them on their cheap packages and eat the very small loss.
Ahrenl
join:2004-10-26
North Andover, MA

1 edit

Ahrenl

Member

Re: Let me pay for what I want

Alright that does make sense.

So what would your opinion be on a DTC per channel charge? Where Comcast simply tacks on a carrier fee to whatever the content owners want to charge the customers, who pay the content owner directly (through their monthly comcast bill). This way Comcast acts as a service organizer, billing agent, and infrastructure servicer; and collects fees on all three. They no longer have to worry about the basis risk from what content owners charge them, and what customers are willing to pay. Of course they've been winning on this basis risk for their entire existence, but with a la carte, it (the risk) would increase.

marigolds
Gainfully employed, finally
MVM
join:2002-05-13
Saint Louis, MO

marigolds

MVM

Re: Let me pay for what I want

It is a feasible system (would not even require that much billing adaptation), but I think the content providers would fight it every way they could.
It seems the last thing they want is for consumers to know the real costs of individual channels.
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl

Member

Re: Let me pay for what I want

Well, this would be the easiest way for a la carte legislation to proceed then. Require content providers to bill by customer if that customer opts into the a la carte program.

Toadman
Hypnotoad
join:2001-11-28
Mystery

Toadman

Member

Sue the solution

Great, now my cable operator will have another reason to raise the bill. Legal fees to defend themselves from this yahoo and his (undefined $$$ damages). He takes millions, forces us to pay more. Good Job!

Chuckles0
Premium Member
join:2006-03-04
Saint Paul, MN

1 edit

Chuckles0

Premium Member

How about...

A la carte taxation?!

My job would suck even more if there was a la carte pricing. Imagine the calls... 400 people in queue all wanting to change their lineup. Please remove channels a,b,c,d and e and add on w,x,y and z. Whattaya mean everytime I change my line up I have to pay $1.99? Why does channel a cost more than channel b. Your company is ripping me off! Why do I have to hold for 10 minutes?

HAAAAAAAHA!
chemaupr
join:2005-06-06
Alexandria, VA

chemaupr

Member

Re: How about...

So you are complaining becouse a la carte will give you more job security?
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl

Member

Re: How about...

Can't you add channels now through the menu in your cable box? I imagine it would more like a live on-demand.
lesopp
join:2001-06-27
Land O Lakes, FL

lesopp

Member

Re: How about...

Or it could be done through a web interface.
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl

Member

Re: How about...

Not all TV watchers have the web.

DOStradamus
MVM
join:2003-11-04
Santa Rosa, CA

DOStradamus to Chuckles0

MVM

to Chuckles0
said by Chuckles0:

A la carte taxation?!
That taken literally, would be a Good Thing.

There's be a "Schedule FU" too attach to your 1040, listing every Federal Governmment department and program, with a field for how much of your money (it's all your money!) you wish to fund it with.

Even though the "Schedule FU" would consist of several pages, it wold be easy to properly fill out; with your copy of the U.S. Constitution in hand, fund *only* those programs enumerated that it authorizes the Federal Government to run.

-NK

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK to Chuckles0

Premium Member

to Chuckles0
said by Chuckles0:

A la carte taxation?!

My job would suck even more if there was a la carte pricing. Imagine the calls... 400 people in queue all wanting to change their lineup.
Primitive technology.

The set-top box/reciever/CableCard/media center etc could do it all.

IE every box has every channel on it. Customer merely selects which ones they want. Can turn them on and off at will. Nothing needs to be done, no truck rolls, etc. Only thing is someone will have to program a nice slick billing system to interface with the user database.

Problem is, I'm betting the providers will make fees for changing programming. They'll try and make changing channels prohibitively expensive so people won't do it and oversubscribe.
wentlanc
You Can't Fix Dumb..
join:2003-07-30
Maineville, OH

wentlanc

Member

Lets face it.....

Consumers in EVERY market are becoming fed up with being strong-armed by these industries to purchase enhanced services that are strategically designed to make people spend more money. It all stems from the desire to appease stockholders greed, rather than offering truly competitive services, and return some value to the customer. This is true for wireless services, telephone, broadband, broadcast services, the list goes on and one. Guess what corporations, people are starting to really feel the pinch, and won't take it forever.

Ah well... This will be interesting..

CW

••••

i1me2ao
Premium Member
join:2001-03-03
TEXAS

i1me2ao

Premium Member

spanish

why cant all the Spanish channels be bundled in one area instead of spread out..

••••
caco
Premium Member
join:2005-03-10
Whittier, AK

caco

Premium Member

Here if the future if they get what they want.

Customers thing they are paying a lot now, just wait if this crap ever happens. You will get less channels and the ones that are left will be more expensive.

Bravo,AMC,Discovery,Biography,History,Currentv,SCIFI, would probably all be in trouble just to name a few. Shopping channels which I hate but little old ladies love, would go adios.

••••

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx

Member

Bye Bye ESPN!

I would love to not have to pay for the sports channels; ESPN, ESPN 2, ESPN whatever, Yes!, SNY, etc. Being the most expensive "Basic" channels currently running, removing them alone would probably cut the content cost by 30%-40%.

wdoa
join:2001-10-16
Spencer, MA

1 recommendation

wdoa

Member

Re: Bye Bye ESPN!

I spoke with a Charter mucky muck a few years back and he told me that something like 50% of their programming costs went to the ESPN's, NESN's etc. I say let the folks who want to watch their NFL Mookball and such pay for it. Currently "extended basic" at $60 a month is just too damn expensive. All I have is the "mini-basic", broadcast channels, public access, and C-Span. If I could cherry pick other channels like History, Discover, etc. I would if I didn't have to subsidize the meathead channels.

No to ESPN
@comcast.net

No to ESPN

Anon

Re: Bye Bye ESPN!

The high prices for cable and satellite resulting from carrying ESPN and like are funding the high salaries of professional sports players. In order to stop the insanity the industry should be forced to go to ala carte. Then we can just say "NO TO ESPN" and the sports mafia.

Ask yourself who is fighting against ala carte and you might not like the answer.

MrMoody
Free range slave
Premium Member
join:2002-09-03
Smithfield, NC
Netgear CM500
Asus RT-AC68

MrMoody

Premium Member

Cartels

I guess it's good they're starting to notice, but there are plenty of cartels ripping people off in this country besides the entertainment and cable industries, some much worse. Telcos, banks, oil, drug companies, the list goes on and on, and we've been letting them join up freely for about 15 years now.

•••••••••

simplykristi
Cancer Sucks
Premium Member
join:2001-11-28
Blue Springs, MO

simplykristi

Premium Member

Moving Channels to Digital

What irks me is the moving of channels from extended basic to the digital side. I don't want to pay extra for those channels and the box.

Kristi
Rexxriot
join:2004-05-29
Danvers, MA

Rexxriot

Member

How many would lose their jobs?

If they offer a la carte, stations will go under and people will lose their jobs. Is it really worth saving a few bucks if hundreds or thousands of people will be unemployed?

justbits
DSL is dead. Long live DSL!
Premium Member
join:2003-01-08
Chicago, IL

justbits

Premium Member

Re: How many would lose their jobs?

A few bucks is all you'll save if the cable companies have it their way.

On the whole, the savings is more like millions or billions of dollars across the entire US. Just think of it, right now that excess money you pay is feeding the cable TV operators and their content providers. If the majority of people don't have a choice to not watch particular channels, those channels are providing useless content that is being subsidized by other channels. Instead of the money going to the cable industry, the money would be back in the consumer's hands and be used to fuel other markets that are more important to consumers.

This isn't the end of the cable industry or a permanent loss of jobs. It just may be the kick in the pants that content providers need to start innovating instead of continously finding ways to charge you less (but more overall) for more content that you don't want or need or even can possibly use.

captnhook
join:2001-02-20
NY

captnhook to Rexxriot

Member

to Rexxriot
said by Rexxriot:

If they offer a la carte, stations will go under and people will lose their jobs. Is it really worth saving a few bucks if hundreds or thousands of people will be unemployed?
That's BS
If a network fails it is because they aren't doing a good job providing content that viewers want to watch. Why should we be subsidizing a network that's doing a crappy job that nobody watches???
I for one don't want to be personally insuring (and subsidizing) Bubba's job down at Spike TV or some such hack Netwerk.
Your argument about their job security is nonsense.
Eric Martin
join:2005-06-19
66308

Eric Martin

Member

Espn

Costs the most from what I read.

As long as you people want 'BRANDED'(disney,discover) channels then prices won't come down really.

There needs to be competition also.

zapper
@verizon.net

zapper

Anon

zap the channels...

zap the channels who take money from commercials that go:

"HEAD ON, APPLY DIRECTLY TO THE FOREHEAD"

a-la-carte would make simple work of that...
id_deleted
join:2003-05-01
Salt Lake City, UT

4 edits

id_deleted

Member

30 years.

The reason you only watch a handful of those 80 channels is because the content of most of them simply sucks. They have no reason to provide anything better because they are basically subsidized by the package purchase. If you allow the consumer to vote with their wallet, you will see a drastic change in that situation, since a channel will either have to provide desirable programming content or they will cease to exist. Competition will regulate the channel costs, so there is no basis to the "cost you more" argument.

High definition television was actually developed in 1969. It took twenty years for it to finally become available to the public. Even now when its hard to find a "new" TV that is not a wide screen 16:9 HDTV, we are forced to watch nearly every cable channel in the same low resolution 4:3 format. Low resolution 4:3 stretched to 16:9 is not a real pretty sight as many have found out.

The reason why cable channel signal quality did not increase across the board nearly instantly with the advent of high definition hardware is simply because broadcasters have no reason to invest in the technology; there is nothing to gain since they are subsidized by cable and sat tv packaging, and a switch over to HD equipment is not cheap. The bandwidth required to deliver HD technology is simply wasted on a plethora of low resolution channels that no one watches.

à la carte pricing offers at least some hope that this situation will change for the better, as the channels that DO survive will be those that offer the very best content at the highest resolution they can muster.

Otherwise content will continue to deteriorate, and that new "paid programming" series that seems to be so popular with the nighttime viewing crowd now (as its all that's really on then) will continue to creep into the daytime viewing schedules.
raybrett
join:2001-02-20
Saint Louis, MO

raybrett

Member

Re: 30 years.

And then there are those of us who simply don't think that HD is worth the additional cost.
Sammer
join:2005-12-22
Canonsburg, PA

Sammer

Member

Collusion plus restaint of trade equals treble damages!

If this becomes a class action it could be huge.
Maggs
Premium Member
join:2002-11-29
Jackson Heights, NY

Maggs

Premium Member

20 Channels

I want only 20 Channels. Just the basics. let's say they charge 50 cents a channel, that's reasonable, but this is too technically complex to work.
liquidice4
join:2002-08-25
Naperville, IL

liquidice4

Member

Re: 20 Channels

I agree with you on a low price for channels. 85% of the channels that I watch are OTA locals, 10% is Cartoon Network, the other 5% is Discovery, TLC, Comedy Central, TBS, and E!. So if they charge 5 bucks a channel All I can skip the locals and just get those channels and only have to pay 30 bucks a month.

Besides they really need to be selling the over priced sports channels like they do with the movie channels. I know sports fanatics would pay the premium to watch these channels.
rid0617
join:2003-07-20
Greer, SC

rid0617

Member

Look at the phone company example

All anyone has to do is look up C band programming on the net. They will see how many channels are less than one dollar a month. If you buy a free to air receiver you will see how many of these channels are free, unscrambled and legal to receive while the cable/satellite charges you for them.

I feel sure if a la carte is pushed the cable industry will do as the phone company. Every one knows caller ID from AT&T does not cost $8 a month as they charge and that is the way they make their bundle look cheaper. I expect the slime ball cable companies to do the same. These problems will not end until people show the entertainment industry their product is not a necessity in life.

captnhook
join:2001-02-20
NY

captnhook

Member

Laughable

Most of these cable companies are also content providers or shareholders in the content providers.
They set their own rates and then claim that they are over a barrel and victims of content providers.
Their defense of why there are high rates is laughable at best and criminal at the worst.

Thisisretarded
@comcast.net

Thisisretarded

Anon

What nobody seems to realize

Is that implementing an a la carte system will result in the need to completely restructure the cable systems as well.

As it currently stands right now, all channels are constantly available through the physical cable, with the exception of premium channels and on demand content.

Here in Denver, we're just now starting to install switched video, one of the three or four Comcast markets in the country that are going to test switched video service. Its only being deployed on ONE headend and its not for the purpose of removing the channels from the line entirely, its being used to take lesser-used channels off of the active line so we can deploy additional HD services in that bandwidth. Oh and yeah, the customer service note... I work in sales for Comcast and I can guarantee you that every single time a customer calls to change their channels, they will be charged 1.99 per change. This isn't even a total "well they're making a change so we're gonna screw them" tactic either. CSG charges us for every work order that we put in and last I heard, they actually charge us about $1.50 per workorder.

Now think about it this way. The entire cable infrastructure will need to be redone. This will most likely require some sort of a receiver on every TV in the home in order to get the channels that you want, since straight coax is a one-way path and does not allow for an upstream channel. The box would have to communicate to the server to do an authentication to find out what channels you are authorized to have and each channel stream would have to be initiated each time you change the channel. YAY for more channel lag when changing channels!

Also, doing something like this could very well spend the end for cable altogether. Even though all that bandwidth would be freed up since we'd be on an on demand platform, its still not going to be used, which means its a waste, which means more cash out the window. When it comes to bandwidth, you always have a specific amount available for use. Whatever doesn't get used is wasted. Its not like we're talking about eating dinner here where if you don't use it all, you just save the rest for the next day.

A move to forced a la carte, as has been said time and time again in this thread, will cause the death of numerous channels and an increase in cost for your average subscriber overall.

Oh and by the way, just because a channel is watched less doesn't mean its any less valuable. If you were to split viewership by demographic, you would plainly see that certain age groups are far more likely to watch certain channels. A good example is G4. I highly doubt you'll see a large amount of those aged above 50 watching that channel... just the same as most teenagers won't watch the history channel but the elderly love it. Just some food for thought.
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