FCC puts 'a la carte' on the menu

FCC PUTS 'A LA CARTE' ON THE MENU
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
The Federal Communications Commission today plans to begin considering banning programmers from "tying" -- making cable systems take less-popular or new channels to get must-haves, such as ESPN or CBS. Programmers have used the practice to launch scores of channels. That's why you see all those spinoffs of Walt Disney's ESPN on basic and digital cable. Operators didn't necessarily want them -- they just couldn't see a cheaper way to get the flagship channel. Each extra channel adds a fee to customers' bills. "The problem for consumers is that they have to pay higher rates for a bunch of channels they may not want or watch," says FCC chief Kevin Martin. Cable operators routinely cite programming costs as a big reason they've more than doubled rates over the past decade. Chairman Martin thinks curbs on tying could ease those costs. "Cable TV rates have continued to rise above the rate of inflation. I'm hopeful that this would help control the rate of increase of cable rates."
http://www.usatoday.com/printedition/money/20070911/1b_cable11.art.htm