Has the Time Come for A La Carte Cable Programming?

Reuters reports on the fact that cable operators are rethinking their opposition to a la carte programming. A la carte would allow customers to choose exactly which channels they want to subscribe to, rather than having to adhere to the service providers’ pre-fab tiers of service. Historically, cable and satellite companies have fought against this idea. Program suppliers also prefer tiers. They use their popular channels as leverage to force operators to carry newer offerings

The big reason for the cable operator’s apparent change of heart is the rising cost of carrying some channels. Program suppliers charge cable operators a few for each household served. As with so many other things, these fees only move one way: up. In particular, ESPN has caused a lost of consternation. According to SNL Kagan, carriers are charged $4 per subscriber to carry ESPN and its sister channels, making ESPN the most expensive of all channels.