We could have à la carte cable TV soon if John McCain has his way
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If you ask a hundred random people what they hate the most about cable television, the top answer will undoubtedly be “Paying for channels I don’t want.” Channel bundling is the bane of the existence of many TV-lovers, but it might not be that way for long if John McCain has anything to say about it. The Arizona senator is currently penning legislation that would force cable companies to allow à la carte options for consumers.
First and foremost, this potential legislation would force the Comcasts of the world to offer individual cable channels without demanding that customers buy a bundle. While this would undoubtedly result in cheers from consumers, it could potentially have some unfortunate side effects. Some niche channels can only exist because they are part of a larger bundle. If most people only pay for the popular channels like AMC or HBO, the smaller ones might not make enough money to justify their continued existence. Also, we’ll most likely end up paying more for less. Since we’re not spreading the fees over an entire bundle, each channel will likely end up costing more to sustain itself since it won’t have the same massive number of viewers it did before. This legislation is aimed at helping consumers, but it could actually end up inconveniencing them indirectly.
This bill would also prevent media companies from holding broadcast stations hostage from cable companies. Under this legislation, broadcast channels like ABC, CBS, NBC, and FOX can’t be used as bargaining chips to force cable companies to carry other channels. In addition, cable companies would no longer be forced to blackout sporting events if the tickets didn’t sell out. This sounds perfect for consumers, but the massive media lobby will surely fight this to the bitter end. The Hill points out that McCain tried to push similar legislation through back in 2006 to no avail, and this bill will likely meet the same fate.
However, if this legislation does move forward, it could have a big impact on streaming and download services like Netflix, Hulu, Amazon, and iTunes. After the Aereo upset in court, some broadcasters threatened to pull out of over-the-air broadcasting completely, and the same thing could happen with regulations on cable. If the media companies feel like they’re getting a raw deal, they’ll move towards building up their presence on the web where they aren’t bound by the same rules. Strangely enough, making cable television more appealing could actually hasten the shift toward IPTV.
[Image credit: espensorvik]