The Economics of Indecency

[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
Just days after FCC Chairman Kevin Martin launched an attack on indecent programming on basic cable, major operators seem to be coming to heel, hurriedly drafting plans for special tiers of family-friendly programming. Comcast and Time Warner Cable are hoping to head off harsh regulation that could force systems to offer all basic channels à la carte -- the same way they sell pay movie channels like HBO -- which could create financial havoc for both systems and networks. The two operators spent last week talking with programmers and combing through network-affiliation contracts to see what kind of family packages they can offer. Neither company expects to finalize plans quickly but may broadly outline a family-tier plan at a new indecency hearing before the Senate Commerce Committee scheduled for Monday, Dec. 12. Programming executives worry that a family tier presents the same hazards as à la carte, or individually priced channels. Heavy tiering could leave some networks with fewer subscribers, license fees and ad sales exacerbated by greater marketing costs. The family networks could actually be the ones that suffer.
http://www.broadcastingcable.com/article/CA6290435?display=News&referral=SUPP
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See also:
* Cable a la Carte: Choice vs. Cost?
http://www.businessweek.com/technology/index.html/content/dec2005/tc20051207_647629.htm