Re: [Swprograms] OT: Al-A-Carte Cable (was) FCC Chair Says Broadband Top Goal

[jfiglio1@xxxxxxxxxxxx]

Remember, though, that it's a mix of carriage fees and advertising 
that supports these services in the US.  The ad part of the equation 
could be addressed through bulk buying of air time that is spread over 
generalist and niche channels.  But any loss of carriage revenue (and 
there would be some) would have to be offset with increases in ad 
buys.  The "conventional" wisdom is that breaking up the cartel (so to 
speak) would result ultimately in lower revenues overall.

John Figliozzi

----- Original Message -----
From: Rob de Santos AFANA <rdesantos@xxxxxxxxx>
Date: Thursday, July 21, 2005 10:08 am
Subject: Re: [Swprograms] OT: Al-A-Carte Cable (was) FCC Chair Says
	Broadband Top Goal

> 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 
> digitalchannels 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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