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Re: [Swprograms] OT: Al-A-Carte Cable (was) FCC Chair Says Broadband Top Goal
- Subject: Re: [Swprograms] OT: Al-A-Carte Cable (was) FCC Chair Says Broadband Top Goal
- From: "Rob de Santos AFANA" <rdesantos@xxxxxxxxx>
- Date: Thu, 21 Jul 2005 10:08:15 -0400
- Organization: Australian Football Association of North America
It's certainly the conventional wisdom, particularly in the cable
industry, that al-a-carte would raise prices and hurt "niche" channels.
I'm not so sure of that and there is plenty of evidence in countries
that require it, that is has had the opposite effect.
If I was planning a niche channel and viewers of that subject were
dedicated and loyal they could easily provide sufficient revenue to keep
it operating even if it wasn't in any "tier". It's the numbers... the
average cable channel (ESPN, CNN, etc not considered here) generates
just 25 to 50 cents per subscriber for the channel in the tier model.
So you need 10 to 100 times the subscribers you need in the a-la-carte
model.
Despite even my own predictions, many recently launched Canadian digital
channels are surviving on average viewership of just 2 or 3,000 viewers
per hour. So it can work. I concur that it may not happen here in the
US.
-Rob
> -----Original Message-----
> From: swprograms-bounces@xxxxxxxxxxxxxxxx
> [mailto:swprograms-bounces@xxxxxxxxxxxxxxxx] On Behalf Of
> John Figliozzi
> Sent: Wednesday, July 20, 2005 7:24 PM
> To: Richard Cuff; Shortwave programming discussion
> Subject: Re: [Swprograms] FCC Chair Says Broadband Top Goal
>
> I'll go out on a limb here and say it won't ever happen...
>
> The entire programming/pay structure of cable tv is built on an
> expanded basic model. Many niche services cannot stand on their own,
> but they can in combination with others. If al a carte selection
> ever became an option, there would be far fewer channels lit up.
> Some may say "fine!" to that, but the money people wouldn't like it.
>
> John Figliozzi
> Halfmoon, NY
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