Cable Firms Want Greater Channel Flexibility

A report given from the Cable Communications Association (CCA) to the ITC claims that between one and two million extra subscribers could be gained from making the selection of channels more flexible. At present the large media groups which provide the channels very often sell them in ‘bundles’ which means that users can often not access basic channels before they have paid for premium ones.

The CCA says that experiments have shown a 50 to 100 per cent increase in consumer demand for pay-TV when more flexible packages of channels or smaller basic packages are offered. Members of the CCA are asking for percentage carriage requirements to be banned on existing and future contracts and for an end to the imposition of ‘retail bundling’.

The report says that people will not want to pay to receive services they don’t want and the industry has to realise this. There is the risk, however, that if consumers had full freedom to choose some channels would have to stop due to under-subscription. In view of this the ITC is expected to hit a compromise.

Cable Communications Association: 0171 222 2900