FCC Green Lights a la Carte

[Nick]

Key lawmakers comment

Given Federal Communications Commission Chairman Kevin
Martin's earlier opinions suggesting a la carte is a viable
model for selling video programming to consumers, it's not
surprising the agency and its Media Bureau came out with a
one-sided report that stated program choice is workable in
the pay-TV marketplace.

The FCC's a la carte report was released Thursday, and
proposed that consumers could be better off under a la carte.
The report also explored several a la carte options consumers
and industry companies could consider when studying program
choice.

The FCC report also took aim at what it calls "mistaken
calculations" in a 2004 study on a la carte conducted by Booz
Allen, which was originally submitted by the cable industry
for commission consideration. The Media Bureau said the Booz
Allen Study failed to net out the cost of broadcast stations
when calculating the average cost per cable channel under a
la carte. As a result, the study overstated the average price
per cable channel by more than 50 percent.

The report said the current industry practice of bundling
programming services may drive up retail prices, making video
programming less affordable and keeping some consumers from
subscribing to a pay-TV service. For many popular networks,
advertising and subscription fees may rise as viewers shift
to a la carte programming options, even if consumers opt to
watch only a few channels, stated the FCC report.

Also, a la carte could make it easier for programming networks
valued by a minority of viewers to enter the marketplace, the
report said.

Key lawmakers commented on the FCC move.

Ted Stevens, the Alaska Republican and chair of the Senate
Commerce Committee, said if a la carte is not more expensive
for consumers, "I will support an effort to take such an
approach, subject to discussions with providers on the
downside of such a process."

Said Sen. John McCain (R-Ariz.), "The report confirms what I
have believed for years - if consumers are allowed to choose
the channels their families view then their monthly cable bill
will be less. Choice is far preferable to being forced to buy a
host of channels they don't even watch."

www.SkyReport.com - used with permission

[Nick]

EchoStar Weighs In

There were mixed reactions to the Federal Communications
Commission report that found a la carte programming options
are a good thing for consumers.

EchoStar said in a statement, "Who should be deciding on the
content coming into American homes: consumers or
conglomerates? The FCC came down on the side of consumers."

The FCC study, said EchoStar, confirms what it has said all
along: "Consumers should drive programming selection, not
large programmers mostly owned by broadcasters and cable
operators."

The company added, "EchoStar - the largest distributor without
a major ownership interest in content - is committed to
providing consumers with more choice and flexibility,
including themed tiers and a la carte programming discussed
in the new FCC report. We applaud the FCC's Chairman Martin
for focusing attention on this important issue."

Those with the Sky Angel satellite TV service
said it appreciates the FCC looking for ways
in which consumers can access better television.
And the company, which offers Christian-oriented
programming via its system, also boasted that
it's delivered "wholesome television
environment" to customers for several years.

"We didn't have to, nor did we want to wait
for Congress or the FCC to put pressure on us
to provide better options for families," said
Sky Angel CEO Rob Johnson. "From day one,
family-friendly TV has been our objective."

Some cable interests were not happy with the FCC findings.

Kyle McSlarrow of the National Cable and Telecommunications
Association said most studies found that a mandated a la
carte regime would be more expensive for consumers and result
in less diversity in programming.

"It is disappointing that the updated Media Bureau report
relies on assumptions that are not in line with the reality
of the marketplace. Over the last 25 years, the American free
enterprise system created the most diverse video programming
on Earth with the best value for the customer," he said.

www.SkyReport.com - used with permission

[Nick]

"Under all of the scenarios evaluated, consumers would be
able to purchase fewer than the 11 cable channels that they
regularly watch today, for the same price that they currently
pay to receive the entire basic and enhanced basic tiers..."


National Journal's Technology Daily - Insider Update
Thursday, February 9
By Drew Clark

Requiring the cable industry to offer television programming on a per channel basis could lower the costs to consumers, according to a new FCC report. The report reversed another one released by the agency in November 2004.

Under per channel -- or a la carte -- programming, the report said consumer bills would decrease by 3 percent to 13 percent in three of four scenarios. That finding came when the FCC was "correcting for" what it called a mathematical error in a cable-industry-commissioned report.

"The earlier [FCC] report contained mistaken calculations, relied on unsupported and problematic assumptions, and presented an incomplete analysis," FCC Chairman Kevin Martin said in a statement. "A careful analysis reveals that a la carte and increased tiering could offer consumers greater choice and the opportunity to lower their bills."

The previous report, issued under Martin's predecessor, former FCC Chairman Michael Powell, found that a la carte requirements likely would raise prices and reduce customer viewing choices. That finding, which supports the cable industry view, has been affirmed by Congress' Government Accountability Office.

But Martin -- who favors a la carte pricing as well as tiers of "family friendly" channels and/or subjecting the cable industry to "indecency" law that currently governs only broadcast television -- ordered the FCC Media Bureau to do a new review...

MORE... (http://www.njtelecomupdate.com/lenya/telco/live/index.html)

[Fifty Caliber]

Globecast has always been a la Carte, I guess that's the type of pricing some people want.