Skip to main content

FCC Acknowledges A-la-carte Cable Savings

USA Today reports that consumers could shave as much as 13 percent off their cable TV bills if they were allowed to buy channels individually, a new report from the Federal Communications Commission concludes.

The FCC's finding that people would benefit from an "a la carte" system undercuts a bedrock principle of the cable industry � that big bundles of channels deliver the best value for consumers. Programmers have long refused to sell their channels a la carte, saying it would erode their subscription fees and ad revenue.

But cable TV bills keep rising 2 to 6 percent annually. That rise is due, in large part, to programming costs. The FCC's report, prepared at the behest of Chairman Kevin Martin, reversed a 2004 FCC report released under the prior chairman, Michael Powell. The Powell report had affirmed the industry's claim that a la carte programming would mean less choice and higher prices for viewers.

In other matters at the FCC -- it is rumored that the Commissioners have now agreed to formally acknowledge that the planet earth is in fact "round," which is also in contrast to the findings of a prior FCC chairman (they don't recall which one). As a result, the "flat-earth" lobby is apparently already considering their next move.

Popular posts from this blog

Bold Broadband Policy: Yes We Can, America

Try to imagine this scenario, that General Motors and Ford were given exclusive franchises to build America's interstate highway system, and also all the highways that connect local communities. Now imagine that, based upon a financial crisis, these troubled companies decided to convert all "their" local arteries into toll-roads -- they then use incremental toll fees to severely limit all travel to and from small businesses. Why? This handicapping process reduced the need to invest in building better new roads, or repairing the dilapidated ones. But, wouldn't that short-sighted decision have a detrimental impact on the overall national economy? It's a moot point -- pure fantasy -- you say. The U.S. political leadership would never knowingly risk the nation's social and economic future on the financial viability of a restrictive duopoly. Or, would they? The 21st century Global Networked Economy travels across essential broadband infrastructure. The forced intr...