Advertisers Sit Out Cable A La Carte Distribution Battle

ADVERTISERS SIT OUT CABLE A LA CARTE DISTRIBUTION BATTLE
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
The cable industry is charging back against the Federal Communication Commission’s endorsement of a la carte cable pricing, which would let consumers buy only the channels they choose to receive, rather than bundled packages. But advertisers, who would see yet another mass-reach vehicle upended if a la carte becomes the norm, have been strangely silent so far. For advertisers, a la carte would likely mean fewer ratings points since incidental viewing would drop. That reduced supply would likely drive prices higher. On the flip side, advertisers would know that the viewers watching a particular channel were attached enough to purposefully pay for it -- a sign they’re more engaged with it.
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