If XM-Sirius Radio Offer A La Carte Channels, Why Doesn’t Cable?
To make the merger deal between XM and Sirius satellite radio more appealing to lawmakers, the two companies have created an a la carte subscription package. If the plan goes through, subscribes will be able to choose any 50 channels from XM or Sirius for $6.99 per month, or $14.99 per month to pick any 100 channels from both satellite providers. If the 50 or 100 channels package feels slightly limiting, subscribers can always add additional channels for 25 cents a piece. This progressive packaging model sounds like a dream come true for satellite radio subscribers, and a painful reminder to cable television subscribers: why can’t I get a la carte cable television?
Cheaper by the dozen
In true double talk defensive techniques, the cable companies claim a la carte packaging is impossible because their production costs are greater than those of satellite radio. Wait a second! I thought the reason cable companies couldn’t offer a la carte pricing had to do with “volume discounting.” Of course that excuse sounds just as ridiculous. If my cable company gets a better price for ESPN by selling me the entire package of redundant sports coverage rather than just one channel, I’ve never seen the savings.
Don’t mess with my bonus
There are only two reasons why anyone resists change: they simply don’t like change, or they are protecting something. In the case of cable companies, I think we know the answer. Their bloated package pricing model is lining someone’s pockets with lots of wonderful money. Force them to offer a la carte channel pricing and someone might not get their $900,000+ annual bonus.
For more information about cable channel choices, check out the Channel Choice article at hearusnow.org.
Technorati Tags: cable television, a la carte channel pricing
on August 27th, 2007 at 8:28 am
I agree. If the cable company can provide “On Demand” movies they can certainly work out the logistics for a la carte channel pricing.
About 6 months ago, we found ourselves stuck watching the same crap on TV, and much of it had themes that were in conflict with our beliefs. So, we switched from the “Premium” cable package to the “Basic”, which got us 13 channels. We then added the “Family Choice” package and got back channels like HGTV, DIY, Discover, Food Network, Disney Channel, etc. While it’s not a pure a la carte selection, it’s better than no selection at all. On top of that, my bill went down from $54 to $30. Now, there’s something to rave about.
on August 27th, 2007 at 12:29 pm
I’m thinking I’d like to move to 100% television a la carte. I’ve been renting old television series on DVD lately. I have to say that it’s far more enjoyable to view good television on DVD rather than real time. I know I would give up watching real-time television but I could just buy cable for reception of go back to the old rabbit ears.
Just a thought.
on August 28th, 2007 at 6:41 pm
I agree, I would pay for cable for maybe 3 channels but without the option to pay for just those I don’t bother.
on August 28th, 2007 at 7:42 pm
The reason cable doesn’t do it is because they don’t have to. Where we live we have 1 access to cable TV and they charge what the traffic will bear. Yes, there’s always Dish and Direct, but their services are just as costly as the former. The cost for basic cable is @$60.00/month. What did we do? We’re doing the same as Bret, above.
on August 29th, 2007 at 7:35 am
Absolutely. I enjoy ESPN once in awhile but prefer our local sports channel NESN. I might purchase 1 version of ESPN but not 5 slightly different flavors of the same thing! Good grief! I’m interested in sports news, not 5 different channels of the same poker game. Since when did THAT become a sport?
But I digress. Thanks for the comment John.
on August 29th, 2007 at 7:43 am
Morgan you have an excellent point about the Dish and Direct options: They are just as costly as traditional cable.
I looked into those options when they had a vendor both at Costco. On the surface it looked promising, but once I tried to replicate my current cable setup the price was exactly the same.
If the cable companies don’t offer an a la carte service, I see a real opportunity for someone like iTunes, etc. Imagine if you could go to someplace like iTunes or a major network web site and download the shows you wanted to watch. Even with the same commercials embedded in the show it would be a far better option than our current cable bundles. I know you can do this now to a certain extent but what if all shows were available in this manner? The only thing any of use would need then is a high speed Internet connection.
If cable companies don’t adjust their channel options soon, I believe we could see just what I described. At the point it’ll be too late for cable.
Thanks for the comment Morgan.