[opendtv] News: McCain May Introduce Cable a la Carte Amendment
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 6 May 2004 10:16:29 -0400
Via Shoptalk
McCain May Introduce Cable a la Carte Amendment
<http://www.tvweek.com>http://www.tvweek.com
Sen. John McCain, R-Ariz., said Wednesday that he is considering
introducing a legislative amendment that would require cable TV
operators to give their subscribers the option of buying programming
a la carte.
Major players in the cable TV industry vehemently oppose a la carte,
contending that it could undermine industry economics and even lead
to the demise of the popular programming networks. But in a hallway
interview with reporters Wednesday, Sen. McCain said the amendment he
has in mind would not require all programming to be offered a la
carte only. "We're just saying you can present two choices: You can
have it a la carte, or you can buy their packages."
Sen. McCain made his remarks after speaking at a Capitol Hill
briefing on a study sponsored by Concerned Women for America that
said that 66 percent of the respondents wanted the right to choose
what cable programming is included in their basic subscriptions. Also
according to the study, 80 percent of the respondents believe they
shouldn't be required to pay for a basic package that includes
channels they don't want to view.
"The results clearly show that a large majority of the American
people are dissatisfied with the current no-choice cable service,"
said Jan LaRue, the group's chief counsel. But in a statement, Brian
Dietz, a spokesman for the National Cable & Telecommunications
Association, said the study was "badly flawed" because those surveyed
weren't informed about the cable industry's arguments about the down
side of a la carte.
"Our guess is that if consumers were asked whether they'd prefer to
have cable or satellite service for free, they'd also answer with a
resounding 'yes,'" Mr. Dietz said. "The fact is that cable consumers
couldn't enjoy the diversity of programming they have today if
programmers had to sell and package their services in an a la carte
manner.
"As pointed out by many network executives and entrepreneurs, a la
carte packaging and pricing would halt efforts to launch diverse new
channels. It also would further diminish diversity, limit choice and
raise prices
among channels that currently exist, and turn back the clock on a
marketplace that has blossomed with wide choice and great value for
American consumers."
Also at the press briefing, Rep. Nathan Deal, R-Ga., who has been
promoting a la carte in the House of Representatives, said he would
probably revise his own plan to introduce an amendment on the subject
this year so that it would apply only to satellite TV operations and
not to cable.
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