Wednesday, December 07, 2005

TV A-La-Carte

The times are a-changinĂ‚’ for television. Recent news shows that the way we receive our television programming may be changing for the better. And, no, I am not talking about Sony Tivo or other Tivo-like products now available. That has changed the way many people watch TV. But the recent news is more about how TV programs are delivered to us.

First, the FCC is about to recommend that people be allowed to get only the TV channels they want rather than having to subscribe to whole packages of TV and cable channels that they never watch. In other words, TV a la carte.

For a long time, consumers have been complaining there still isn't enough flexibility in the programming packages offered by cable and satellite providers. Last week, FCC chairman Kevin Martin told a forum sponsored by the U.S. Senate Commerce Committee, that consumers could have more choice in what they view for cheaper prices if operators would sell content a la carte. According to a new report from the FCC that has yet to be made public, a la carte pricing could actually reduce monthly cable bills for many consumers while also providing more control over what channels they watch at home.

News of the FCC report comes just as many large cable operators across the country announced that they are raising rates again for their service. At the same time, according to the FCC, consumers, especially those with children, are becoming increasingly agitated by the amount of violence and sexual content that comes into their homes on channels they'd rather not receive as part of their subscription package.

But content providers and most of the cable industry say that offering programming piecemeal will result in even higher prices and less choice for consumers. They also claim that an a la carte pricing model would increase overall subscription rates and reduce diversity of programming, because many of the niche or special interest channels today are bundled with more popular channels. If these less-popular channels are sold independently, they will become too expensive to offer and may disappear altogether.

Having put together cable programming for a living, I know that what the industry saying may be true. But, the way they structure their contracts to cable companies make it impossible to offer any sort of a-la-carte programming today. But, the fact that the FCC is now starting to put pressure on the cable industry means things may slowly start to change.

If you would like to read an in-depth article on the subject, please head over to the news.com website to read more.

Meanwhile, Apple iTunes is now offering individual TV programs themselves on an a-la-carte basis. The iTunes store will offer 11 shows from NBC, USA Network and the Sci Fi Channel that range from oldies such as the 1950s cop show "Dragnet" to current shows such as "The Tonight Show with Jay Leno." Apple is charging $1.99 per episode for the television downloads, as well as for music videos and short films. The newly produced shows will be available for download a day after they air on TV.

In October, the Walt Disney Company's television network, ABC, and Disney's cable network began offering five television shows for download via iTunes. Apple said this week that it has now sold more than 3 million videos from its iTunes store since launching the feature in early October, indicating that customer demand extended beyond simple one-time curiosity.

If Apple continues to sell video at this rate, other TV and cable companies will take notice and begin making their programs available for download. The changes we talked about here are only a trickle now, but the floodgates may begin to open soon.

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