This WSJ article takes a look at a la carte cable TV pricing and how it might change the industry. Media companies say it would raise prices for consumers, and there's a suggestion that bundling subsidizes some of the less popular shows.

This Forbes article says it could also drive up the cost of cable broadband internet, suggesting that it, too, is subsidized by bundled content.

There's also an ongoing debate about whether bundling is even legal.

What irks me (and a lot of other people) is paying for content I never watch. For example, the WSJ article says ESPN is the most expensive cable subscription, costing the cable companies more than $5 per month per subscriber. I don't like having to pay $5 per month plus whatever their markup is for something I rarely watch. Same thing with Fox News, which costs the cable company nearly $1 per month. And they should have to pay ME to watch Jewelry TV or Home Shopping Network.

To me, the answer is hybrid a la carte plus on demand. The Forbes article gives an example of Food Network, saying that if it were a la carte it might cost $6 per month, which would attract only the hardcore Food Network viewers and shut out people who only watch it occasionally.

But why are those the only choices? Why couldn't I watch an occasional Food Network program for 25 cents or whatever the demand-based pricing is for it? Or pay $1 to watch a football game on ESPN? Other people who watch every football game might be willing to pay $8 or $10 per month for all programming to get a better deal.

And if I watched a fifth football game, it could prompt me and say "hey, you've watch five ESPN programs this month for $5. For only $5 more you can subscribe to all ESPN programming for unlimited viewing."

Further, it should all be digital on demand. You could watch what you want, when you want, no DVR required. Live events could be streamed and recorded once in the cloud and watched any time. Billing could be automatic.

If you think about it, the conflict between cable companies and entertainment/media companies who hold them hostage is backwards. Cable companies hold the cards. The media companies couldn't deliver their content without the cable companies. And in at least one case, the cable company (Comcast) owns the media company (NBC).

The consumer would pay the cable company for broadband and the content provider for the content. And maybe the cable company could also charge the content provider a commission for sales and delivery (and maybe even billing and collection), making it a win-win for them.

With an on-demand approach for everything (which is what we will have someday but probably not in my lifetime), the cable companies become the content delivery provider independent of the content producer, who would then have to produce content people are willing to pay for. There's already a lot of that going on with Netflix and Hulu and Amazon Video on Demand. Just make it official, and free up the cable TV bandwidth for more internet streaming.

66
like
Stick's picture

Yes, yes, and yes! I wish

Yes, yes, and yes! I wish that I could vote for this post multiple times!

Russ's picture

Broadband

This Forbes article says it could also drive up the cost of cable broadband internet, suggesting that it, too, is subsidized by bundled content.

I believe this is true. When I moved downtown last year, I signed up for Internet-only service with Comcast (I don't own a TV and don't plan to buy one). A couple of days later, a Comcast rep called me & said, "It will be $34 cheaper per month if you keep your existing broadband speed and add the basic cable TV bundle." I explained I don't own a TV, but he said that didn't matter. Sure enough, my bill is about half what it would have been for Internet-only.

(A week or so after signing me up, Comcast sent me a set top box. Did I mention I don't own a TV?)

redmondkr's picture

Same here - complete with the

Same here - complete with the box in a box in my basement. My cable comes into the house and straight to the modem although technically I have their basic TV too.

Comcast TV and phone service both remind me of the way a farmer gets his cow serviced.

AnonymousOne's picture

If you think technology makes

If you think technology makes everything better and cheaper, cable TV is a perfect example it doesn't.

I long for the days of ABC,CBS,NBC, and PBS, and a remote control known as "son."

As in "son, go see what's on channel 10 and turn the rabbit ears a little."

metulj's picture

We haven't had cable TV for 5

We haven't had cable TV for 5 years now. Netflix and amazon....

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options

CAPTCHA
This question is used to make sure you are a human visitor and to prevent spam submissions.
Image CAPTCHA
Enter the characters shown in the image.

Lost Medicaid Funding

To date, the failure to expand Medicaid/TennCare has cost the State of Tennessee ? in lost federal funding.

TN Progressive

TN Politics

Local Media Blogs

Shopper Columns

Local News

News Sentinel

State News

Wire Reports

Site Statistics

Last 7 days:
  • Posts: 26
  • Comments: 540
  • Visits: 15,606
  • Pageviews: 42,482
Last 30 days:
  • Posts: 106
  • Comments: 1552
  • Visits: 46,611
  • Pageviews: 119,877

TN Progressive

Nearby:

Beyond:

At large: