[w_alloy]

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the way this works is that when directv or comcast or whoever negotiates, they get bundles. "yes you can have hbo, but you must also take the golf channel and oxygen". channels that own other channels bundle them together and use it as a way to financially support the smaller ones. if everything were a la carte, it's quite possible that stuff like techtv (whatever it is called now) and other special interest channels will die, or that other niche ones would never get made.


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This is bad then because channels like the the golf channel and tech TV are increasing the costs of cable to the benfit of those who watch them and to the detriment of everyone else. The market is not allowed to work itself out properly because of networks' coercive marketing/selling tactics.

Individualized channels will certainly mean increased price per channel. If MTV costs networks 1.50/month/subscriber now (no clue what actual numbers are), and only half of subscribers want it, then they will have to charge 3/month/subscriber to get the same revenue. So either consumers pay increased prices equal to oldprice(%old/%new)+service charge or the cable companies or networks lose out.

An externality is that ratings will go down. I wouldnt buy MTV, FX, or E!, but I'll check out part of the VMAs, a good movie from time to time, or an old SNL here and there if I have to have the channel anyways.

In summary, this will be good for people who dont want a lot of channels and bad for those that do. It will be bad for lots of small market channels and could be good or bad for larger ones. But everything should work out better overall because the market will be allowed to work more efficiently.

Edit: Evan, THIS should be the end of the thread.