CBS and Time Warner win; viewers lose in cable dispute
[Commentary] So here's the final score: Time Warner Cable got some but not all of what it wanted. CBS got pretty much everything that it wanted. And after a month of being denied access to CBS, Showtime and other popular channels, Time Warner subscribers got the certainty of even costlier monthly bills and the assurance that money-grubbing squabbles among multibillion-dollar media giants will continue.
Why aren't our elected officials hopping mad about these ongoing industry food fights and racing to pass legislation aimed at finally giving consumers a break from the endless cycle of rising pay-TV bills? "We need regulators who are willing to stop powerful special interests, whether broadcasters or cable firms, that use consumers as pawns in their spats," said Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group. "In the long run, we need better rules, including a la carte pricing, to help change the video marketplace," he said. Critics of a la carte say it would cause the average cost of channels to skyrocket and would curtail programming diversity because smaller niche channels would no longer survive. I don't buy those arguments. If the monthly cost of ESPN were to soar to $30, as some have predicted, subscribers would fall away in droves until either the channel came up with a more realistic business model or someone else managed to offer sports at a more reasonable price. That would no doubt involve sports teams and universities no longer soaking fans with ridiculously expensive licensing agreements.
CBS and Time Warner win; viewers lose in cable dispute