Why is it blindly assumed that ala carte would be worse for ALL consumers than the current system?
It would be worse for some households -- most specifically those with very diverse interests.
But for the average consumer....I don't see how it would be any worse than today. Specifically, I don't believe the per-customer average bill for a provider like DirecTV would go up at all. Consumers would have fewer channels, but they would be the channels the consumer wanted to watch.
In fact....if ala carte would drive up the cost for the average consumer, we would already be there. Time Warner & Comcast & Viacom & Disney & DirecTV are out there to maximize profit -- which approximates maximizing revenue since many of their costs are fixed.
Clearly, the marketing gurus at these companies believe that bundling channels results in more profits than selling channels individually.
I understand the story about why ala carte would be bad. I just think that the first law of capitalism means that is a story and not reality.
...because it already failed.