Hundreds of Channels and Nothing To Watch

Cable TV subscribers are tired of having to pay for channels that they never watch. Subscribers want to be able to order channels individually, but cable operators say that would raise consumer prices.

Today's programming tiers force subscribers to pay for channels they rarely watch and have helped drive up cable prices 56 percent since 1996, or three times the inflation rate, Consumers Union says. The top 10 cable networks account for 50 percent of viewing and the top 20 for 75 percent, according to Nielsen ratings.

And since viewers in the typical household just watch 17 channels, "Consumers are forced to buy a lot of channels they don't watch in order to get the ones they do want," the group says. "Consumers who want choice and value are stuck."

Cable firms said that a mandate that subscribers be able to order channels individually, instead of in the bundles that operators offer now, would doom many networks and raise prices.

The National Cable & Telecommunications Association made some of the most dire predictions, citing a study it commissioned from Booz Allen Hamilton. The report says that operators would have to spend up to $34 billion for additional digital set-top boxes to enable a la carte pricing, which would raise consumer prices by about $12 a month. Operators also would have to pay more to install and maintain the extra gear even as they make less on local ad sales.

Cable operators and programmers add that "a la carte" would sharply cut the audience for many networks.

Viacom, citing a report from Economists Inc., says the average monthly price a channel would have to charge cable operators could grow to $3.39 per subscriber from 38 cents. The result, it says, is that consumers could end up paying the same $40 per month they now pay for dozens of channels to get just five expanded basic channels along with basic service.

But Consumers Union says programmers are exaggerating the effects of "a la carte," especially since expanded-basic packages would still be offered, too.

Lawmakers are considering proposals to expand consumer choice in cable TV, such as "a la carte" channel choices or smaller groupings of channels with similar programming, known as "themed tiers."

 Share