[Commentary] A report issued by the New York investment bank Needham & Co. warns that a switch to so-called a la carte programming would cost the pay-TV industry about $70 billion and leave viewers with fewer than 20 channels.
"If you unbundle, it would be bad for the TV industry but also bad for consumers," said Laura Martin, senior media analyst at Needham and author of the report, "The Future of TV." "The question is whether value to consumers is measured by the quantity of choice available or the price," she told me. "I think choice is better." "There's a lot of waste with these huge bundles of channels," said Linda Sherry, a spokeswoman for the advocacy group Consumer Action. "People are paying a lot of money for channels they don't watch. They're not getting a good deal." To me, that's the bottom line here: Are consumers getting the best possible deal? As long as you're being forced to swallow channels you never watch, the answer has to be no. Martin's response is that consumers are indeed getting a good deal — a great deal, in fact. It all depends on how you look at it.
If the average cable bill runs about $70 a month, Martin said, people should view that as $60 for the dozen or so channels they watch on a regular basis, plus an additional $10 for the option of watching more than 100 other channels any time they please. This ability to discover new programming — the opportunity to make choices — is more important to most TV viewers than saving a few bucks a month, Martin insisted.