Verizon: TV Providers Should Consider a la Carte
By Phillip Swann
TVPredictions.com
http://www.tvpredictions.com/mcadam041013.htm
Washington, D.C. (April 10, 2013) -- Verizon CEO Lowell McAdam said
yesterday that TV providers should consider offering a la Carte
programming as a way to counter cord cutting and appease cost-conscious
consumers, writes Variety.
McAdam made his remark during a Q&A session at the National Association
of Broadcasters convention in Las Vegas. While the Verizon chief opened
the door to a la carte, which would allow subscribers to pay only for
the channels they watch, he didn't suggest Verizon was actively
considering offering it.
"This isn't a cause celebre for us but I think it's an early warning
that we should pay attention to," he said, according to Variety.
What Is a la Carte? Find out here.
McAdam is not the first executive of a major TV provider to suggest
recently that his industry should consider a la Carte. Dish Chairman
Charlie Ergen has said several times that TV providers should consider
it because consumers want it. But Dish has never taken steps to actually
allowing subscribers to order by a la Carte.
TV providers have traditionally offered their programming in bundles
because it's been determined that it will generate the most revenue. But
with the rise of services such as Netflix, which offers unlimited
viewing of thousands of shows and movies with a $7.99 a month
subscription, many consumers are asking why TV providers can't offer
more affordable plans.
The Verizon executive did break some ground yesterday by hinting that
the days of a TV provider offering 200-300 channels may be nearing an end.
TV providers have been loudly complaining that it's too costly to carry
so many channels, particularly when some content companies require them
to buy in bundles -- pay for an entire group of channels or get none at
all. In some cases, the TV providers would prefer not to carry the
low-rated channels while paying for the higher rated ones.
Cablevision is actually suing Viacom in an effort to end that company's
bundling and several other TV providers say they support Cablevision's
lawsuit.
McAdam noted that his company can determine how many people are actually
watching low-rated channels and the numbers often suggest it's not many.
"It might be in the hundreds," he said, writes Variety. "I think there's
a pressure now from customers about why do I have to have 300 channels?"
A few years ago, TV providers used to brag in promotional campaigns that
they had more channels than their rivals.
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