Why A La Carte Cable Could Kill TV’s Golden Age

The system may be broken, but television executives and industry analysts argue that an a la carte world would be detrimental to the quality of programming and could even end the so-called “Golden Age of Television” viewers are currently enjoying.

“The subsidies that come from bundling are a big part of what has contributed to the ‘TV revolution,’ both creatively and financially,” said Dr. Philip Napoli, an associate professor of communications and media management at Fordham University Schools of Business. “The production costs for a show like ‘Mad Men,’ which has never drawn a particularly large audience, can be justified in part by the fact that millions of households that never watch ‘Mad Men’ are funding its production through their basic cable subscription to AMC.” The current model supports multiple revenue streams, including advertising and carriage fees from cable companies. To maximize profits, companies like Disney bundle less viewed channels like ABC Family with more popular ones like ESPN. But fiddle with the formula and the landscape could shrink. In an a la carte scenario — or a new alignment that allows cable companies to buy or offer smaller packages — only the strongest channels may survive.