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[IP] FCC REPORT PANS A LA CARTE





Begin forwarded message:

From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: November 19, 2004 2:23:43 PM EST
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] FCC REPORT PANS A LA CARTE
Reply-To: dewayne@xxxxxxxxxxxxx

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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