Friday, September 21, 2007

Suit vs. cable bundling of channels

The Parents Television Council has signed on in support of a lawsuit to stop cable companies from bundling their channels. This challenge strikes at the heart of cable television economics, in place since it all began in the late 1970s. With vertical integration of companies in the business (owning channels and the distribution system), we get bad channels such as E! or TV Guide or all those sports channels if you don't happen to watch sports. Proponents of the status quo argue that prices wouldn't go down because individual channels would have to cost more per slot on cable (with new economics in place). But at least we wouldn't have to put up with (0r fund) MTV or VH1 or FX if we don't plan to use them.
The suit will never go anywhere. Too much power on the other side.

No comments: