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FCC REPORT PANS A LA CARTE
From: David Farber <dave () farber net>
Date: Thu, 25 Nov 2004 08:35:41 -0500
Begin forwarded message: From: Dewayne Hendricks <dewayne () warpspeed com> Date: November 19, 2004 2:23:43 PM EST To: Dewayne-Net Technology List <dewayne-net () warpspeed com> Subject: [Dewayne-Net] FCC REPORT PANS A LA CARTE Reply-To: dewayne () warpspeed com FCC REPORT PANS A LA CARTEBack in May, House Commerce Committee Chairman Joe Barton (R-TX) and Reps.
John Dingell (D-MI), Fred Upton (R-MI), Edward Markey (D-MA) and NathanDeal (R-GA) asked the FCC to study the per-channel sale of cable television
programming, known in French-obsessed Washington as a la carte. OnThursday, the FCC released that report to Congress, addressing the economic issues as well as the possible effect indecent/objectionable programming.
In short, the FCC concluded that a la carte would not lower cable bills."We don't come out and say that, but there are plenty of inferences that we certainly don't recommend that," said an FCC source known only as Op Out.
"It doesn't really endorse anything. It just gives a lot of merit to the operators -- big and, most notably, small [operators] -- and programmersthat mandatory a la carte would broadly be a problem." On rate issues, FCC
economists concluded that the purchase of nine networks a la carte wouldabout equal the prices consumers pay for expanded basic. A la carte would
likely lead to higher bills because the average cable home watches 17channels, including local TV stations. In other words, consumers would pay
more to maintain access to their favorite channels. The report alsoconcluded that the cable and direct-broadcast satellite industries' efforts
to promote their digital blocking technologies were preferable to program-sale mandates that would threaten pay TV's long-established business model of grouping channels in large tiers. [SOURCE: Multichannel News, AUTHOR: Ted Hearn] http://www.multichannel.com/article/CA481516.html?display=Breaking+News http://www.broadcastingcable.com/article/CA481597?display=Breaking+News http://www.tvweek.com/news.cms?newsId=6758 Proponents of a la carte were quick to react:"The study was rigged against consumers in favor of large cable companies, giant broadcasters and other media behemoths," said Gene Kimmelman, senior director for public policy and advocacy for Consumers Union, the non-profit publisher of Consumer Reports. "If the FCC had studied our actual proposal
- a voluntary a la carte and mixed-channel bundling approach targetingdigital cable subscribers - it would have concluded that it would lead to lower prices, greater choice and more diverse programming for consumers."
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- FCC REPORT PANS A LA CARTE David Farber (Nov 25)