[opendtv] Re: Analysis: The Ala Carte Part
----- Original Message ----- From: "Craig Birkmaier" <craig@xxxxxxxxx>
Ala Carte could be a major disruptive force, perhaps enough to topple the house of cards that the broadcast, cable and DBS industries have built. In fact it could be their salvation, as consumers are becoming aware of just how badly they are being screwed by the current model where they must pay for stuff they do not watch. As subscription TV services continue to become more expensive, the stage is being set for a dramatic shift to downloading content on a fee basis.
I predict the opposite effect. Ala Carte will result in fewer channels being offered, not more channels. Current business models of Cable and DBS are such that networks such as Discovery can offer 5 channels because they get 5 subscription revenue streams from all subscribers. How many channels will Discovery be able to offer if they only get one or two subscription revenue streams on average from each subscriber? And if you think that the "per sub" fee will increase with Ala Carte, the public isn't foolish enough to end up paying the same amount for what they perceive as fewer channels, even if they are channels they'll rarely or never watch.
Ala Carte can have many unintended consequences, and most likely will not achieve the intended one (which is to lower the subscriber's monthly bill.)
John 



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