All Posts, Links, The Segue

The Segue, Episode 22: Evil Empires

art_smallAlso known as “that time Micah and Eric argued about cable for 40 minutes straight”.

Subscribe in iTunes | Follow @SeguePodcast on Twitter

All Posts, Editorials

TV: Time to Get Rid of Channels We Don’t Watch

Article first published as TV: Time to Get Rid of Channels We Don’t Watch on Technorati.
The way we access television channels needs to be rebuilt. Yes, we can access shows through streaming services such as Roku, Boxee, Google and Apple TV systems, even the forever-young Xbox 360, along with a plethora of smart TVs and Blu-Rays, but our primary method of accessing channels, cable and satellite providers, needs to be re-imagined.
Currently, we get channels through cable and satellite providers in bundles — your basic package includes channels like Fox, NBC, and CBS, all the way up to premium packages with  HBO and Showtime. Each bundle comes at a certain monthly price, and more than likely will include channels that you don’t watch.
Take for instance, DirecTV. They charge $46.99, before additional fees, for its Choice package, which includes 150 channels,40 of which are in HD, and an HD-DVR. This is actually a promotional price for the package, which retails at $60.99 without HD channels (add $10) and the DVR service (add $7), bringing the total you will pay monthly after the promotion expires in one year (read the fine print) to $77 a month. Now for that $77 a month, you may get channels that you will never watch, like BYU TV, The Cooking Channel, or NASA’s always invigorating programming.


Now, if you could replace these channels with ones that you would actually watch, this would be a major win for the consumer. This is where the long rumored àla carte package would come in. The pick and pay idea has been floated and batted around since early 2006, when FCC chairman Kevin Martin supported the concept in an article published by USA Today. An FCC report showed that the new system could save customers as much as 13% on their cable bills. A Bill was even introduced in 2007 to allow customers to pick the channels that they pay for, but the idea was rebuffed by companies like Disney, NBC, and Fox, along with cable providers Comcast and Time Warner. The bill only received 10 cosponsors.

The companies state that if the FCC allowed channels to be sold à la carte, it would be horrible for customers and prices would go up. In a 2008 FCC filing, executives of ESPN, Disney/ABC, MTV Networks, NBC Universal, Turner Broadcasting and Fox said,

“The perverse result of your proposal is the most successful and most watched programs and networks — typically those that invest the most in quality programming — would be penalized for their popularity to the detriment of consumers.” The executives went on to say, “If your plan is ever adopted, consumers will be outraged.”

If it is so horrible, then why is it already being done? Rogers, a Canadian cable company is testing the alternate system through March 2012, offering their variant of the pay and pick plan. But, this change wasn’t due to  a company listening to customer complaints — it was ordered by the Canadian Government. The very act that American cable providers claimed would be catastrophic to customers, is currently being implemented in Canada.  And Rogers isn’t the only Canadian cable company to test the service. Vidéotron, BCE, and Optik TV, run by Telus all offer a variant of the system.

The Canadian Radio and Telecommunications Commission demanded that customers be given an option to choose the channels that they would like to purchase, in addition to bundles. CTRC chairman Konrad von Finckenstein said, “We heard it loud and clear from consumers … You do not offer consumers the choice they want and deserve. They see it on the Internet, they see it on mobile, and they say, ‘Why can’t I have it here when I buy programming from cable or satellite?”

If the test is successful in Canada, expectations for a similar system in the U.S. will gain traction, as the media companies’ argument erodes. It remains to be seen if consumers will make enough noise to attract the eye of Washington, as the change will not be a voluntary one by the cable companies. Lets hope that rumored Apple TV does something to shake up the industry, as Joshua Topolsky intimated. If not, we will have to rely on something that is not very reliable — the Government.