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FCC says consumer a la carte cable costs would rise

If an a la carte pricing model were to be adopted by US systems, the average cable subscriber would actually experience an increase in the monthly bill, says the FCC. It was responding to various requests for such a study from Capitol Hill.

Members of Congress in general, and Sen. John McCain (R-AZ) in particular, have been interested in imposing such a regime on the industry, primarily for two reasons: 1). the notion that consumers should not be required to pay for a lineup which included channels which they never watch; and 2). consumers should not have to pay for a lineup which includes programming to which they object - - MTV and Comedy Central are two channels frequently mentioned on this count.

The FCC said that households which restrict their viewing to nine channels or less would benefit from such a regime. However, the average household watches 17 channels, including broadcast channels carried on the system. The FCC said an average household would likely experience a 14%-30% increase in monthly rates.

Consumer groups and anti-indecency groups have led the campaign for a la carte, but niche cable programmers - - in particular minority and religious channels - - have objected, saying it would pose an insurmountable barrier to new entrants and would threaten the survival of existing channels.

Cable operators already provide mechanisms which parents can use to block objectionable channels. They argue that the physical and administrative costs necessary to accomplish a la carte alone would add overhead and make it more expensive for subscribers.

FCC Chairman Michael Powell promised to stay on the cable situation, saying, "We remain committed to our long-standing policy goals of making communications and media technologies available to all Americans at affordable rates and fostering diversity in our nation's media. Many Americans are frustrated with year after year increases in their pay-television bills and we will continue to address those concerns through the recommendations provided in this report and other avenues available to the Commission."


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