Posted on 03/25/2004 6:43:53 PM PST by Indy Pendance
McCain Proposes a La Carte Cable Experiment
Yahoo directory of cable television stations.
Sen. John McCain, R-Ariz., a longtime critic of rising cable rates, said Thursday that he thinks the Federal Communications Commission should begin a pilot program that would determine whether offering cable channels a la carte would benefit consumers.
McCain expressed support for the experiment to reporters, giving support to an idea initially proposed by Consumers Union director Gene Kimmelman during a hearing on cable rates.
"We're looking at Mr. Kimmelman's suggestion of some kind of pilot program," he said. "I plan to talk to the FCC about it."
Consumers are chafing on the programing leash the cable industry holds, and it's time to see if giving them broader latitude will help them, McCain said.
"Right now, they have all the choice of a Soviet election ballot," he said.
A la carte pricing is becoming one of the hot-button issues in Congress as cable rates continue to rise faster than inflation and lawmakers come under pressure to slow the price hikes and give people more flexibility. Since Congress deregulated the industry in 1996, cable rates have increased by 53%, while inflation has risen 19%.
"I don't hear as much about gay marriage and immunity for gun makers as I hear about the cost of cable," Sen. Frank Lautenberg, D-N.J., said.
Sen. Trent Lott, R-Miss., agreed.
"You start acting irresponsibly, we regulate you," Lott told cable industry executives at a committee hearing. "There is a point where people will rebel. They're going to holler at us, and we're going to take it out on you. Americans are only going to pay so much for football. This is a fair warning."
During his testimony before the committee, Kimmelman told the panel that the government should require cable operators to offer programing a la carte on digital cable systems where it is technically feasible. If prices go up for consumers, then the FCC could reverse course and end the a la carte pricing program.
"It's really time to call everyone's bluff," he said. "Everything in the package should be offered a la carte."
Cable industry executives oppose a la carte pricing. They contend that it would actually raise rates and would not slow the rise of televised smut.
"It would be a consumer disaster to force ESPN and other channels out of the extended basic lineup," ESPN and ABC Sports president George Bodenheimer said. "Doing so will not address concerns over the retail or indecency."
If channels are not grouped together in tiers, the number of people who have access to the channel will drop, causing advertising revenue to fall and leading to increases in subscription fees, cable executives argue.
While that view holds in the short term, the long term might look different, Cox Communications president and CEO James Robbins said.
"In the long term, I think that is where the industry is going to go, but there's a $30 (billion)-$40 billion bridge we have to get over first," he said.
A government mandate to go to a la carte is going to make it more difficult to raise the money necessary to install the technology that would make the change possible, he said.
"I think the marketplace is going to get us there," he said.
But many lawmakers are skeptical and impatient with the industry's constantly increasing prices. They also feel that cable operators are forcing viewers to bring objectionable programing into their homes.
"I think you lose the moral high ground if you're bundling pornographic channels with Nickelodeon," Sen. Gordon Smith, R-Ore., said. "I say that as someone who is not unfriendly to your industry."
It is unlikely that any cable legislation will clear Congress this year, but the hearings are setting up what is likely to become an issue for the next Congress.
"As long as cable rates continue to go up, the pressure will increase," McCain warned.
FoxNews
History Channel
Discovery
A&E
AMC
Turner Classic Movies (yeah, I know)
TV Land-- Gots to have Andy Griffith and Leave it to Beaver
Also, XM Radio is a must have.
Slowly we'll get there, the democrats took 70+ years to ruin this country, it's going to take more than 3 years to restore it. There are too many dependent upon government now. We have to keep at it, with attrition, those who were for the great society' will soon be dead, and the hippie baby boomers are a small minority. We have to keep at it. Remember, we have instant news. 10-20-40-60 years ago the news was by newspaper or TV. We all want change NOW, but we have to be realistic, maybe if I'm lucky, I'll see a true conservative government in my life, but I have to work for it for my kids, my grandkids and our future generations. We can not throw up our hands in dispare.
"You start acting irresponsibly, we regulate you," Lott told cable industry executives at a committee hearing. "There is a point where people will rebel. They're going to holler at us, and we're going to take it out on you. Americans are only going to pay so much for football. This is a fair warning."
Now this is what I call teeth and about damn time.
I NEED:
FoxNews
Bravo
OLN (Sunday bullriding)
Bravo
Comedy Channel
IFN
More Bravo
No MTV
Discovery
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