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The FCC released a new report last week concerning a second study on the bundling of Television programming packages in the satellite Television and cable industries. The study concluded customers could be saving funds by ordering only the channels they believed they wanted. Even so, this was a second study. The 1st study, released 15 months earlier, had the opposite conclusion, bundling programming was greatest for customers. So which position is the FCC genuinely taking? Which choice assists American buyers save funds on their cable and satellite bills? Is unbundling Television programming a viable solution?

Is a la carte programming politically motivated?

If the bundling study was motivated simply by a question of economics, it would be one point. But there are political motivations involved as nicely. The key political motivation is from the conservative proper who really feel its unfair for consumers to spend for programming that contains objectionable content. They contend shoppers shouldnt be forced to pay for content they dont want coming into their houses. The FCC can only censor content that is sent freely over the airwaves.

Significant content material providers have reacted to this circumstance by providing Family members Programming packages that function pick channels at a lower monthly price. Both main satellite providers DISH Network and DirecTV lately announced the availability of family packages. DISH rolled theirs out quite speedily in February for $19.99 a month about $15 less than any other DISH Network package mixture. DirecTV has plans to release a family members package in mid-April. Cable providers also followed suit in hopes that demand for a la carte programming would subside.

Television broadcasters have argued being forced to supply service on an a la carte basis would force smaller sized channels with niche audiences to go off air due to the unwillingness of customers to subscribe. Broadcasters assume specialty channels like G4, the Golf Channel and the Independent Film Channel couldnt generate enough of an audience to remain in organization.

The economics of a la carte programming.

The current battle amongst satellite provider DISH Network and the Lifetime channel raises some actual economic questions about a la carte programming. The contract for the two entities ended December 31st with out a new contract being signed. DISH Network claimed Lifetime had asked for a 76% rate improve, even though Lifetime countered DISH had demanded a 33% reduce. It was estimated Lifetime would shed $20 million in ad income and licensing fees spread over 8.5 million DISH subscribers each and every year if the agreement terminated.

Lifetime and DISH eventually reached a deal, undisclosed of course, and Lifetime returned to DISH Network on February 1st.

The Lifetime vs. DISH battle exposed some numbers that show how considerably a la hostgator discount coupon carte programming could cost. These numbers are estimations based on limited data, but lets do the math. If Lifetime was organizing on losing $20 million over 8.five million clients, that adds up to $two.35 per consumer, per year. Thats only 19.five cents per month, per customer in profit. Assuming a gross profit target of 50%, the a la carte price tag of Lifetime must be 29.25 cents per month.

If we made the very same assumption across the board, a package of 60 channels would cost $17.55 per month. DISH Network charges $29.99 per month for 60 channels. That is a per channel expense of 49 cents. DirecTV on the other hand doesnt offer a 60 channel package, but has a package of about 155 for $41.99. Thats 28 cents per channel with 49 XM satellite music channels included. Taking out the music channels yields a per channel price of 39 cents. Comcast cable has a cost in my local location of $39.99 for 98 Television channels, or a per channel cost of 40 cents.

Satellite and cable providers have an extra expense in gear. Satellite providers bundle the satellite gear with the programmingthats why they call for contract periods. Cable providers have the identical gear expense, but dont need contract periods.

Are loved ones programming packages a fair option?

If you look at the cost comparison with the Loved ones Packages, youll see acquiring family members programming truly expenses more! On DISH Network, the household package contains 31 channels for $19.99, which is 64 cents per channel. DirecTV will start a family members package in mid-April which contains 40 channels for $34.99a per channel expense of 87 cents. Comcasts family tier is $31.20 per month for 16 channels and leads the industry in per channel cost for family programming at $1.95.

There certainly is an benefit to bundled programming as a lot more channels in a package lowers the per channel value giving an advantage over a la carte programming. Even though household centric programming packages offer G rated possibilities, those alternatives come at a premium.

Is unbundling satellite programming worth it?

If you appear at the numbers, there is a modest pricing advantage to a la carte programming in smaller packages. But as program selections increase, the price truly comes down. Urging Congress to force broadcasters to supply a la carte programming wont benefit customers financially. Nonetheless, if the actual problem behind the move to a la carte programming is content material and not price tag, education about parental controls on satellite equipment would be a far better solution.