Cable groups attack pay-TV reforms

The US cable industry on Tuesday vowed to defend its practice of selling
content to subscribers in bundles after media regulators proposed an
overhaul that could dramatically alter the industry?s revenue model.

An à la carte pricing system, in which consumers can pick and choose the
channels they buy rather than accept pre-set bundles of programming, was
one of three proposals presented at Senate hearing on indecency on
television.

Voluntary adoption would be ?economically feasible?, Kevin Martin,
chairman of the Federal Communications Commission, argued, alth-ough he
stopped short of saying the FCC or Congress should make the proposals
mandatory. His stance marks a radical departure from the policy adopted
by the FCC last year under the chairmanship of Michael Powell, who said
an à la carte regime would make pay-TV more expensive.

It drew immediate criticism from the National Cable Television
Association, an industry group, which argued technology that allowed
parents to block channels from being viewed in their homes was the best
solution to concerns over indecency.

The industry fears Mr Martin?s proposals, including one option that would
force cable and satellite companies to adhere to the same decency
standards as network TV and another that would force companies to offer
users a ?family friendly? bundle, could make the cable companies?
revenues unpredictable.
An attempt by government to mandate how cable companies can sell their
products would face vigorous legal opposition by the industry on the
grounds that it was a violation of the companies? constitutional right to
free speech, Kyle McSlarrow, NCTA president, said.

The proposals, he said, were akin to forcing newspaper publishers to sell
each section of their newspapers separately.

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  • Re: Cable groups attack pay-TV reforms
    ... > selling content to subscribers in bundles after media regulators ... > programming, was one of three proposals presented at Senate hearing on ... > Association, an industry group, which argued technology that allowed ...
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  • Re: Cable groups attack pay-TV reforms
    ... > The US cable industry on Tuesday vowed to defend its practice of selling ... > channels they buy rather than accept pre-set bundles of programming, ... > stopped short of saying the FCC or Congress should make the proposals ...
    (rec.arts.tv)