A la Carte Cable Could be a Tough Sell

[SOURCE: USAToday, AUTHOR: Paul Davidson and Laura Petrecca]
It's unlikely that Congress will pass legislation any time soon requiring cable companies to offer “a la carte” pricing plans. Cable companies argue that a la carte would be a death knell for small cable channels that are now bundled with other stations. More likely, some analysts say, is that the Federal Communications Commission's new conclusion will pressure cable and satellite companies to offer better ways for parents to screen cable stations that show risqué programs. Legg Mason says the cable industry could allow parents to screen out channels such as MTV, FX and Comedy Central, which draw complaints from children's TV advocates. The FCC now finds that its 2004 report on a la carte pricing was flawed in three ways: 1) It said the average cable household, which watches about 17 channels, would see its bill rise 14% to 30% with a la carte. The average channel price would be $3.90 to $4.73, the report said, and only subscribers who paid for fewer than nine channels would save. But the study, according to the FCC staff, mistakenly included the broadcast channels on the basic tier in the 17-channel model. If those stations were omitted, the effect of a la carte on bills would range from a 13% drop in prices to a 4% increase, the new report is expected to say. Consumers who order as many as 14 channels would save money. 2) It assumed every household would have to pay for a digital set-top box in order to order individual channels, raising monthly costs by $12. The new report suggests that a al carte could be offered only to those who already have digital boxes. Under that scenario, prices would actually fall about 2%. 3) The report wrongly assumed that a la carte would prompt consumers to watch 25% less TV (well, sure, you'd save all that time flipping through 100 channels you don't want.)
http://www.usatoday.com/printedition/money/20051130/fcc_consumers30.art.htm

* FCC CHAIRMAN URGES CABLE TV TO POLICE ITSELF OVER INDECENCY
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
"While the testimony will likely garner headlines, we don't believe it will significantly increase the risk that the government will require cable operators to offer a la carte programming, at least anytime soon," said Blair Levin, a financial analyst for investment firm Legg Mason. "I think what's going on here is there is an effort in Congress to get cable operators to do something about indecency on their own."
http://www.latimes.com/business/printedition/la-fi-indecency30nov30,1,25...
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* CABLE BY THE CHANNEL FAVORED
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
Without endorsing any particular solution, Chairman Martin outlined three options to deal with the issue. He said providers could offer customers a family-friendly programming package; they could sell channels a la carte, allowing parents to buy only those channels they want; or the government's limits on broadcast indecency and violence could be extended to core offerings from cable and satellite companies. "We continue to believe it will be an uphill battle to enact cable indecency legislation," Stanford Washington Research Group analyst Paul Gallant wrote in a report. He said mandatory a la carte rules could hurt cable and satellite providers, TV programmers and telephone companies now entering the video business. "As a result, legislation would have to overcome significant lobbying efforts by powerful industries," Gallant said.
http://www.washingtonpost.com/wp-dyn/content/article/2005/11/29/AR200511...
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