Why Cheaper Cable Opens A Pandora's Box

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Smaller cable TV tiers are perched on the edge of a slippery slope that few ever want to go down: a la carte programming. Just that phrase is enough to make a cable executive freeze in his or her tracks, and a thousand-yard stare sets in.

Memories of 2006, when the Federal Communications Commission fixated on the possibility of allowing consumers to choose their channels, trigger shivers up and down spines. That's because a la carte nearly became a reality despite protestations that it would destroy the business model that enriched the industry for so long.

But a la carte is not the same thing as a discounted tier, you might say. True, but they're close enough. Consider the first question that will occur to any potential subscriber considering purchasing Essentials: Gee, what channels will I be getting? Then when they see what they are getting and not getting, the next natural question will be, well, why can't Time Warner Cable just let me order the channels I want? Shrinking the number of channels even at a reduced price prompts the consumer to be conscious of the very thing the operator would rather they not notice: the absurd ratio between the number of channels viewers get and what they actually watch. Bundling channels may be the foundation of the cable business model, but it's the bane of many consumers' monthly credit-card bill.


Why Cheaper Cable Opens A Pandora's Box