[IP] FCC REPORT PANS A LA CARTE

[David Farber <dave@farber.net>]

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 CARTE

Back 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 Nathan
Deal (R-GA) asked the FCC to study the per-channel sale of cable 
television
programming, known in French-obsessed Washington as a la carte. On
Thursday, 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 programmers
that mandatory a la carte would broadly be a problem." On rate issues, 
FCC
economists concluded that the purchase of nine networks a la carte would
about equal the prices consumers pay for expanded basic. A la carte 
would
likely lead to higher bills because the average cable home watches 17
channels, including local TV stations. In other words, consumers would 
pay
more to maintain access to their favorite channels. The report also
concluded 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 targeting
digital 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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