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How We Pay for TV May Soon Change
A
USA Today article
explains the rising shift from bundled packaged programming to a la carte programming, whereby consumers would have a choice to select only the channels they want to pay for. FCC Chairman Kevin Martin has already expressed his support in a la carte programming. Additionally, as AT&T and Verizon search for ways to improve the attractiveness of their IPTV offerings, we may see them offering a la carte programming.
"I think we are on a slippery slope to something that hopefully will be much better for consumers," says Gene Kimmelman of Consumers Union. "Consumers could wind up with more choices and more control over what they spend and what they get."
Meanwhile, some cable companies and prgorammers continue to retort that packaged programming is a "bargain" for consumers. Fox Networks CEO Anthony Vinciquerra said, "I think the (expanded-basic) model, as it is today, works pretty well. To challenge that is to try to fix something that doesn't need fixing."
Yet, in many European countries, companies already offer a la carte programming. Spain, Italy, Canada and Hong Kong are among the countries where consumers have the choice buy channels individually. The USA Today also reports that Fox's sister company, BSkyB in the UK, already offers customers near a la carte programming through a selection of more than 90 packages. When asked why the U.S. doesn't follow their footstep, Vinciquerra says, "Foreign markets grew up differently."
Click over to USA Today to read the
entire article
.
Posted on Mar 13, 2006
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