Small Cable Operators Split on Considering A La Carte
Small cable operators are split on whether they would sell channels individually if they had the chance, which Cablevision supports. Mediacom and Cable One officials said they're open to considering a la carte programming. Bresnan Communications joined larger operators, including Charter and Cox (CD Jan 27 p5), in opposing a la carte. “If you look at all the research that has been done, a la carte will lead to decreased choices for consumers and increased prices and less diversity,” said Steven Brookstein, Bresnan exec. vp- operations: “We are not a supporter of a la carte for that reason.”
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So far Cablevision is the largest cable operator to back a la carte. Chmn. Charles Dolan repeatedly has said a la carte will cut prices, especially on sports programming. The firm’s position is the same as Dolan’s, said a Cablevision spokeswoman. Analysts had questioned whether he was speaking for the company his son runs (CD Dec 2 p10).
Meanwhile, although FCC Chmn. Martin said Jan. 20 that the long awaited and controversial revisions to its a la carte report would be issued in a week (CD Jan 23 p3), that didn’t happen by our deadline Fri. Cable industry officials have said they would take the document under advisement. “We would be open to seeing that and understanding that, and maybe that study will reveal something that the other studies have not,” said Brookstein.
Although 5 cable operators we spoke with don’t support govt.-mandated a la carte, some firms including Cable One said deals between programmers and distributors to allow voluntary a la carte would be welcome. “Our position has been pretty clear, we do not support government mandated a la carte,” said an executive of Mediacom: “But we believe cable companies should have the flexibility on a voluntary basis to decide on the programming we offer in each market.”
Cable One would consider a la carte - if contracts allowed it, said a spokeswoman: “We are bound by our programming agreements at this point, and so obviously it is not something that is even feasible for us, but it would be something we are interested in exploring.” She said the firm hasn’t taken a stance for or against a la carte but still would consider it. “I don’t get the impression from programmers that that’s something they're interested in,” said the official. Programmers including Disney’s ESPN have said they don’t support a la carte because it would jack up cable rates (CD Jan 20 p1).
Some media activist groups, including the United Church of Christ, haven’t taken a stand on a la carte because of conflicting information. Others including Free Press have been silent on the issue. Media Access Project also hasn’t taken a position, though CEO Andrew Schwartzman said a la carte might offer some benefits. “You're paying for a lot of stuff that you don’t want,” said Schwartzman: “And you're supporting a vertically integrated structure that is inefficient, and antithetical to diversity.” Progress & Freedom Foundation’s Adam Thierer disagreed: “While some people only see downsides to the bundling of channels together, there are many upsides… Bundling has brought us a rich diversity of programming options that likely would not have been possible absent that arrangement.” It has also reduced per-channel costs, he said.
A point cable operators agree on is on family tiers, backed by Martin and Senators including Commerce Committee Chmn. Stevens (R-Ak.). Cable One and Mediacom officials said they're considering offering such packages. Bresnan had previously said it plans such a tier later this year, while 4 large cable operators including Comcast and Cox have unveiled lineups, with about 15 channels targeted at kids, that will cost about $30 monthly.
Cable One is looking to see how large operators fare with their tiers, which Martin, Comr. Copps and lawmakers including Sen. Allen (R-Va.) have said may not offer wide enough programming choices, including sports. “We're exploring the possibility, looking at what some of the other MSOs are doing and kind of waiting to see how successful they are with the family tier,” said the Cable One official. Mediacom is “looking at” a family lineup, that would be “consistent with our own programming contracts,” said a company official.