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Television Media

Cable TV A La Carte? 461

Anonymous Coward writes "According to this BusinessWeek article you can now get your MTV a la carte. I having been waiting for years to buy my cable by the channel, and this article indicates that my cable company is now legally required to let me. I am going to call Time Warner tomorrow with my list just to see what they say. Anyone out there doing this now?"
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Cable TV A La Carte?

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  • by burnsy ( 563104 ) on Thursday November 07, 2002 @12:00PM (#4616930)
    It says you can get HBO without having to pay for a premium level of service. They can still require you to get basic service and even make you rent a digital box.
  • Pipe Dream (Score:4, Insightful)

    by Anonymous Coward on Thursday November 07, 2002 @12:00PM (#4616936)
    This can't be true. I mean, who's going to explicitly ask for the three religious channels, the channel where they talk about hot rods, and that one that's just a bad radio station? These things get bundled for a reason.
  • Price limits? (Score:5, Insightful)

    by Penguinoflight ( 517245 ) on Thursday November 07, 2002 @12:02PM (#4616952) Journal
    What kind of price limits are they put to? Same price as in a package of channels? Obviously, if they aren't held to any firm price limits, they'll just charge $20/channel, and nobody will buy it.

    I do think this is a good law though, How many people on slashdot would want to get cable just for TechTV?
  • Fun ... (Score:5, Insightful)

    by vonkraken ( 228236 ) on Thursday November 07, 2002 @12:03PM (#4616963)
    I am sure that the 'package' pricing will make consumer choice still include a few channels that would otherwise not be purchased. How many cable channels rely on being packaged with other groups of channels just to get a shot at having some eyeballs watching them?

    Package deal - 39.99
    Individual Channels - $3.00 -$5.00 per channel.

    It could add up very quickly, and I think that most consumers couldn't be bothered to pick and choose channels while taking pricing into account IMO.

    Cheers,

    VonKraken
  • Long Time Overdue (Score:5, Insightful)

    by CatWrangler ( 622292 ) on Thursday November 07, 2002 @12:05PM (#4616981) Journal
    I actually would be willing to pay more than I am now, if they offered more options on channels and I could configure my own system.

    It would be better to have 70 channels of things you want to watch, rather than have 125 channels which include 4 home shopping networks, oxygen, lifetime,5 gardening channels etc....

    Letting the viewers decide what they want to pay for is quite a concept. What took em so long?

  • by einstein ( 10761 ) on Thursday November 07, 2002 @12:19PM (#4617100) Homepage Journal
    that's cause you don't have any hills. If I wouldn't get cable, I'd have 4 channels, most with horrible reception.
    --
  • by dasmegabyte ( 267018 ) <das@OHNOWHATSTHISdasmegabyte.org> on Thursday November 07, 2002 @12:32PM (#4617209) Homepage Journal
    My dad's worked in cable engineering since its inception and has always said that ala carte pricing is not a good idea.

    First off, it's more expensive. Consider: a fair price for a channel you really want is probably 2-5$ per month. I receive 85 channels for $23. Even eliminating the dozens I don't watch, there's more than 10 channels I do want to get, including all five major networks, comedy central, cartoon network and a gaggle of learning channels, BBCA and of course Food TV.

    Second off, it's not really good for the cable co based on how the cable companies receive and send the channels themselves. Everything's handled by big blocks of splitters and amplifiers. Each handles a set of channels. Channels are pulled down from satelites in blocks as well...TWC in Albany has a set of five or so, one of which is dedicated to all the myriad HBOs, one to all the turner channels, etc. So it makes sense to sell TV in blocks...it's impossible to accurately tell how much a SINGLE channel costs you. In fact, after setup costs and maintenance costs and offsetting the possibility of customer service, just getting one channel may cost about $15 on a good margin, while getting fifty channels on the same line would only be pennies more.

    Finally, it's not fair for marginal channels. You know all those channels you don't watch, like History or Speedvision or Golf TV or Univision? They're all somebody's favorite channel, believe it or not. There may be very few people who watch them, but they're getting equal billing due to being part of a package deal. Thus, they also have the ability to get hugely popular -- after all, you're more likely to catch something interesting on than if you had to order it specifically. Would TV Food be such a mainstay in our house were it not for having actually seen Good Eats, Iron Chef, David Rosengarden's Taste or Jamie Oliver? No. Hell, we wouldn't have ordered "ala carte" a channel that was ostensibly just reruns of Julia Childs.

    Block pricing isn't really that expensive, anyway. I get 85 channels and broadband internet for less than the a quarter of the cost of my car's insurance and upkeep, and I sure get a lot more utility out of it.
  • Not fair? (Score:3, Insightful)

    by nuggz ( 69912 ) on Thursday November 07, 2002 @01:14PM (#4617594) Homepage
    I don't think it would be unfair for Speedvision to not subsidise GolfTV.

    Actually I think it is unfair that a Speedvision viewer would have to subsidize GolfTV.

  • by Anonymous Coward on Thursday November 07, 2002 @03:03PM (#4618525)
    I called and talked to 4 people before anyone knew what I was talking about (supervisor did). But he said that I could only buy ala-cart if I purchased the "Standard" package, which is $37.50/month and already includes the channels I'd want (Sci-Fi and Comedy Central).

    He said if I only get the "Basic Basic" package, which is broadcast channels and a bunch of foreign shite ($12.44/mo) then I can't add anything.

    Aww well. I guess I'll just keep paying for my broadband and leeching the basic cable for free.
  • by cmallinson ( 538852 ) <chris@malli[ ]n.ca ['nso' in gap]> on Thursday November 07, 2002 @03:12PM (#4618593) Homepage
    I'm going to put on a flame retardent suit before saying this but...

    Cable companies should be able to sell you whatever they want, and whatever makes them money. There are alternatives, and if you don't like their packages, get a dish.

    I can't buy just pages 15 through 24 of Time magazine.

  • by PotatoHead ( 12771 ) <doug.opengeek@org> on Thursday November 07, 2002 @04:44PM (#4619431) Homepage Journal
    They depend on the package model. This is why:

    Networks make their money by packaging and sometimes producing programming to get eyeballs. The greater the number of eyeballs, the more they can charge for ad placement. Ad placement is directly responsible for their bottom line.

    Those same eyeball numbers also give them power over the marketing of their programming as well. Valuable shows make or break many networks. The power of the eyeball gives them leverage when it comes to buying or selling program content or placement on their network.

    Right now the Cable and Sat companies basically are selling a fat pipe. Everyone gets in, but everyone also gets out as well. There are basically three tiers. Lame Basic, the basic you should have, and premium. For almost all subscribers, you have to get the first two tiers because of the sick packaging schemes.

    These two factors boost the eyeball numbers for all the networks. This plus the fact that the cable companies can localize ad placement keeps ad revenue high. The more bundling they do, the better this really is for them.

    Networks compete now on a fairly level playing field. The bundles make sure that all of the networks get their chance for air time. If people are allowed to choose the channels they want, then the barrier for entry becomes a lot higher for those less popular or specialized networks. They must work harder to generate interest. Because they are not part of the default channel line-up.

    Nobody involved in the money chain wants this. The cable companies are best served by selling as many channels as they can. The networks want their chance at your attention to come as easily and cheaply as possible and the ad agencies want to be able to target as precisely as possible.

    Per channel subscription breaks all of this. Remember the network exists to make money, not serve your interests. Nice Huh?

    Bundles help smooth revenue also. The best thing you can do for your entertainment provider is to subscribe at the top tier, get your occasional bonus pay per view and never ever call them. Wall Street likes nice smooth growth and month over month revenue.

    This makes their revenue model very simple. Basically all they really care about is the number of subscribers. Their marketing efforts are more or less directed at customer loyalty (Hey we have added more channels!), pay per view and or premium content (Catch the next lame fight @ 49.95 today!), or new subscriptions. (You get your first month free and our installers will make sure your dish and antenna don't work after we are finished!)

    The packages build a sense of value for the whole thing and they stay focused on that. Think maga channels for few dollars -vs- sign with us and get program x.

    One other very important aspect of this goes back to the eyeball number. If you have more channels than you can use, the best way to get your moneys worth is to spend a lot of time watching. You might miss something right? After all there are so many channels, there has always got to be something on.

    Packages encourage casual TV use. There is something to browse and if you browse long enough, there is something interesting.

    Per channel subscription takes a lot of that away. People would then become focused on the various networks more than they are now. The result of this would be more focused television use.

    With both of these comes less overall use because people would become more aware of the programming and when they get the most value from it. Nobody making money wants this either.

    This also would encourage more time based competition from the various networks as well.

    Personally, I feel all of these things are good. Too much aimless TV viewing is bad for all of us. The problem really is there is *zero* financial incentive to provide the sort of service that lets users exercise control of their viewing experience. It is far easier to make money when the viewer has limited choices than it is when they have more choice.

    BTW this is exactly why I quit using subscription programming. Take that money, and purchase programming on media. You can watch at your leisure, don't have to worry about recording and archiving so many things, and can trade with your friends for big savings. If you are tired of it, you can resell it for an even bigger savings.

    Just got the first three seasons of Stargate SG1. Now if I have a free hour, I can watch one of those. In the mood at 3AM and want to share an episode with a friend? Maybe it came up at dinner or work? No problem, do it anywhere you like whenever you like.

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