Skip to main content

U.S. MSOs Still in Denial About A La Carte

USA Today reports that the cable industry criticized the Federal Communications Commission for its report last month that concluded many consumers could reduce their monthly bills if they could subscribe just to channels they want.

The National Cable & Telecommunications Association and Disney released separate studies each commissioned that reached a similar conclusion: The FCC made errors in its analysis, and as a result, favors a policy of a la carte pricing that would result in higher prices as well as fewer and less diverse programming options.

Meanwhile, The FCC stood by its study. Why? The new reports are a sign of "industry hysterics," says Consumers Union's Gene Kimmelman. "In Canada, you can buy a la carte as many channels as most Americans watch for about 20 percent less. In France, you can get ESPN for 40 cents a month, so it's hard for me to believe it would be $20 here in the U.S."

Moreover, PCCW offers IPTV-based a la carte programming within the Hong Kong market, and subscribers are clearly able to pay less than American consumers, which begs the question -- could the U.S. MSOs learn from more progressive service providers in other countries?

Popular posts from this blog

Shared Infrastructure Leads Cloud Expansion

The global cloud computing market is undergoing new significant growth, driven by the rapid adoption of artificial intelligence (AI) and the demand for flexible, scalable infrastructure. The recent market study by International Data Corporation (IDC) provides compelling evidence of this transformation, highlighting the accelerating growth in cloud infrastructure spending and the pivotal role of AI in shaping the industry's future trajectory. Shared Infrastructure Market Development The study reveals a 36.9 percent year-over-year worldwide increase in spending on compute and storage infrastructure products for cloud deployments in the first quarter of 2024, reaching $33 billion. This growth substantially outpaced non-cloud infrastructure spending, which saw a modest 5.7 percent increase to $13.9 billion during the same period. The surge in cloud infrastructure spending was partially fueled by an 11.4 percent growth in unit demand, influenced by higher average selling prices, primari