148:(TRAI) issued the Telecommunication (Broadcasting and Cable Services) Interconnection (Fourth Amendment) Regulation 2007, which went into law on December 1; the rules require all broadcasters to offer channels on an a la carte basis. The regulation states, "All broadcasters will compulsorily offer all their channels on a la carte basis to DTH operators. Additionally, they may also offer bouquets, but they will not compel any DTH operator to include the entire bouquet in any package being offered by DTH operators to their subscribers". Prior to the regulation, only customers in areas covered by the
402:, called bundling a great value and a force for program diversity, and argued that without bundling, ESPN's monthly fee would rise to $ 15. But fortunes subsequently changed for the network, which lost 10 million subscribers. The network went through two rounds of lay-offs, including some 50 broadcasters in April 2017. Analysts saw those moves as part of a shift in how ESPN distributes its programming, including the expected launch of a subscription
257:
Time Warner Cable experimented with such an offering in a limited trial, called TV Essentials. IDC analyst Gary
Ireland called such skinny bundles "simply a placeholder for a la carte" and predicted that consumer demand for the pricing scheme would eventually triumph. At the end of 2015, 20.4% of U.S. households had either dropped cable service or never subscribed in the first place.
153:
Cable) Services (Second) Tariff (Eighth
Amendment) Order, 2007 (a revision of the earlier regulation issued on October 4, 2007), broadcasters were ordered to offer all channels on an a la carte basis to cable providers. Like the earlier regulation concerning DTH operators, this order took effect on December 1, 2007. It also permitted packages to be offered along with a la carte.
370:
revenue in carriage fees and advertising revenues, and would look to its remaining viewers to make up the difference. However, some subscribers would benefit from a la carte, including those who have opted out of bundled channels, but might subscribe to just a few, as well as subscribers with no interest in sports. Casual sports fans, on the other hand, could pay a higher rate.
424:, offered to carry the channel on an la carte basis, arguing that SportsNet LA was most expensive of five regional sports networks and that a bundled offering would unfairly burden the company's subscribers. TWC responded that bundled sports channels were an industry standard, one that DirecTV itself adhered to in other markets. As of the end of the
343:
operating cost of an entertainment cable channel is $ 280 million, which would require at least 165,000 viewers to break even. Based on 2012 viewership, that would leave about 56 channels standing. Analyst Laura Martin recommended that the current business model of bundled tiered subscriptions be kept with no changes.
90:
were incredulous about the offerings, but analysts were not surprised, arguing that the industry would be expected to protect its bottom line. While the CRTC required a basic offering of local television services and mandated channels costing $ 25 or less, it did not regulate the pricing of individual stations.
456:
as an alternative to traditional subscription television services. In this context, a la carte refers to a customer subscribing to individual services, as opposed to purchasing costlier bundles of service from a traditional television provider. To appeal to these customers and expand the availability
89:
On
December 1, 2016, as per policy implemented by the CRTC on March 19, 2015, all television providers in Canada were required to offer an a la carte scheme. Channels were typically priced between $ 4 and $ 7, making bundled packages the better deal for all but the most frugal subscribers. Consumers
511:
is not a true a la carte television service, as it is still distributed in bundles, customers cannot pick and choose individual channels to include in their service or swap them out for different ones individually, and some packages are only available on specific service tiers. The service cited the
256:
prompted rumors that program distributors themselves would push to unbundle at least some of their services. Cable analyst Craig
Moffett argued that a modified a la carte model, consisting of smaller programming tiers, was more economically feasible for distributors and customers alike. At the time,
152:
system (CAS), and cable systems providing the services, had the option of choosing to buy only the channels they were interested in. TRAI intervened after DTH operators complained that broadcasters were forcing them to carry channels that they did not want. In the
Telecommunication (Broadcasting and
342:
concluded an a la carte scheme would cut $ 80 billion to $ 113 billion of consumer value from the industry, cost at least $ 45 billion in advertising, and eliminate at least 124 channels and some 1.4 million media-related jobs. The firm based its estimates on the assumption that the average annual
289:
introduced legislation that would have encouraged, through regulatory incentives, programmers and distributors to offer a la carte services. He cited an FCC survey finding that the cost of expanded basic cable has effectively risen from about US$ 25 a month in 1995 to over $ 54, greatly exceeding
192:
TRAI ordered that pay television customers in India must be given a free choice of channels rather than be forced to choose package deals, enforcing a
January 2011 deadline to implement the changes. The order stated, "Every service provider providing broadcasting services or cable services to its
128:
require a monthly payment that varies depending on how many channels a subscriber chooses to pay for. Channels are sold in packages/bouquets/bundles or a la carte. All television service providers are required, by law, to provide a la carte selection of channels. India is the first country in the
369:
would likely be worse, changing between -5.4% and 0.2%. Part of the reason is efficiency: some distribution costs are fixed whether a distributor provides a few channels or many. If fewer people subscribe, the base subscription rate is likely to go up. In addition, programmers would receive less
297:
enacted legislation that requires cable system operators to "offer subscribers the option of purchasing access to cable channels, or programs on cable channels, individually." A pair of lawsuits aimed at blocking the measure soon followed. Plaintiffs for the first include
Comcast, Fox, CBS and
68:
A la carte pricing has been an often-requested but seldom-delivered option for cable and satellite distribution services. In the U.S., proponents have argued that the model would deliver lower prices, while opponents maintain that bundling offers more customer value and program diversity.
1582:
484:
Amazon Video added its own a la carte "Channels" platform to its service in 2015, which allows users to subscribe to third-party content services delivered on top of the base Amazon Prime service; by 2018, it offered 140 different services, including CBS All Access, Showtime, and
310:
Opposition to a la carte programming has centered in part on program diversity. When channels are bundled into large subscription tiers, less popular niche channels are more likely to survive because their cost is borne by both viewers and non-viewers, alike. In 2008, the
378:
By 2013, the outsized cost of sports programming paid by distributors and passed on to subscribers had influenced the debate. The
Needham study maintained that the creation of a separate sports tier would reduce industry revenues by $ 13 billion. Cable pioneer
176:(TDSAT). On January 15, 2008, TDSAT refused to grant a stay on the appeal challenging TRAI's directive; TDSAT overruled the broadcasters' objections. The agency later set aside TRAI's December 2007 tariff regime. TRAI challenged TDSAT's order in the
188:
environment, the authority is of the view that a la carte should not be made mandatory at the wholesale level as technological constraints in any case make it impossible for the benefits of a la carte provisioning to be passed on to subscribers".
329:
A la carte opponents have also cited economics, arguing that the perceived cost savings of a la carte pricing would be illusory for most subscribers and dramatically reduce revenues for programmers. A December 2013 analysis of the U.S. market by
1590:
85:
said that
Canadians "shouldn't have to pay for bundled television channels they don't watch" and indicated that the country's Conservative government would make it easier for subscribers to purchase channels individually.
364:
study cited by Barro simulated a 49-channel subscription bundle being switched to an la carte scheme. The researchers concluded that subscribers would pay 103.0% more in fees passed on by distributors, while
81:(CRTC) ruled that consumers should be able to subscribe to individual channels, but the fewer channels purchased, the higher the cost for each one. No timeline was set. In October 2013, Industry Minister
390:, whose monthly per-subscriber fee charged to distributors in 2013 averaged $ 5.54, more than four times that of the second most costly national network. According to a report in
222:
394:, many subscribers paid for ESPN through bundled subscriptions, but did not watch it. Of the 100 million households in the United States, just 1.36 million people viewed ESPN in
1872:
1153:
282:
arguing that, on average, consumers would save 13% on their monthly cable subscription rates if they were able to subscribe only to channels that they actually watched.
248:
Industry resistance to a la carte programming in the U.S. has been entrenched even during downturns. In 2011, for example, a combined loss of 1.2 million subscribers to
78:
229:
in exchange for retransmitting a signal. Larger broadcasters negotiated not for higher fees, but for inclusion of their newer, lesser known, non-terrestrial channels.
2154:
2197:
298:
Disney, who argue that
Federal law supersedes state legislation in dictating 'how cable programming is presented to consumers." The second lawsuit was filed by the
1637:
2059:
1687:
1662:
1048:
2223:
1127:
664:
315:
and fourteen other groups argued that case in a letter to the FCC, writing that a la carte pricing would "wreak havoc" on programming diversity.
221:
In the United States, the precedent for distributors bundling channels, rather than offering them a la carte, began shortly after passage of the
2228:
173:
1831:
440:
While the discussion of "a la carte" services initially centered on cable and satellite services, the term has also been used in relation to
1981:
420:(since renamed Spectrum SportsNet LA), with the intent of reselling rights to other regional distributors. The largest satellite provider,
911:
356:
pointed to academic research concluding that an a la carte system would not benefit customers. A typical subscriber, he wrote, would pay "
2084:
1556:
1339:
718:
2130:
30:
1952:
197:
shall offer all pay channels to its subscribers on a la carte basis and shall specify the maximum retail price for each pay channel".
797:
1796:
1613:"HP0606, LD 832, item 1, An Act To Expand Options for Consumers of Cable Television in Purchasing Individual Channels and Programs"
1021:
860:
2103:
77:
In Canada, a la carte service has been required by law since December 2016. The legislation dates back to at least 2012 when the
611:
829:
412:
sold as part of bundled tiers were also a source of controversy. A notable example was Time Warner Cable's agreement to pay the
1930:
526:
1474:
1297:
548:
165:
145:
1737:
2180:
56:
subscription services, each chosen individually by the consumer, and made accessible through one centralized billing and
383:
stated that, for subscribers uninterested in television sports, "runaway sports rights" costs amounted to "a high tax".
1450:
1770:
1073:
275:
82:
312:
1397:
2218:
1425:
425:
141:
was the first to offer channels on an a la carte basis in India, announcing such a service on September 3, 2003.
2040:
1612:
185:
161:
1524:
416:$ 8.35 billion over 25 years to exclusively carry the team's games on a jointly owned television outlet,
57:
691:
2194:
245:. Hence, bundling has not been just a marketing choice for distributors, but a contractual obligation.
121:
1806:
1915:
37:. For subscription distribution services, a la carte pricing contrasts with the prevailing model of
290:
inflation. As predicted at the time by observers and McCain himself, the legislation did not pass.
230:
134:
1846:
2060:"Fans may see Vin Scully games on KTLA, but a fix to the Dodgers TV standoff is nowhere in sight"
1435:
1369:
1257:
1205:
1179:
639:
409:
399:
1231:
995:
943:
2213:
1801:
1430:
969:
921:
885:
807:
771:
745:
323:
279:
226:
177:
109:
2007:
1712:
1499:
1313:
1902:
1284:
466:
1842:
837:
403:
339:
322:
opposed a la carte pricing for similar reasons, fearing that the pricing model would force
41:, in which channels are grouped into packages that are offered on an all-or-nothing basis.
1283:
John McMurria (2008). "Cable Carriage Disputes". In Robin Andersen; Jonathan Grey (eds.).
8:
1891:
580:
445:
429:
413:
361:
210:
99:
49:
2186:
278:(FCC) and one of the best known advocates for the pricing scheme, presented a report to
1078:
669:
348:
299:
271:
149:
34:
428:, the dispute resulted in Dodgers game telecasts being unavailable to the majority of
2108:
2015:
1293:
1101:
493:
366:
253:
202:
181:
360:
on cable under an unbundled system, while watching slightly fewer channels." A 2011
2085:"It's still 'Netflix and no ratings' -- Ted Sarandos rejects a numbers 'arms race'"
1977:
1747:
1742:
521:
335:
117:
38:
1534:
1455:
549:"CRTC rules cable companies must offer pick-and-pay channels, $ 25 basic package"
501:
481:, and are purchased as a standalone service independent of television providers.
478:
331:
234:
53:
886:"Trai issues new tariff order, b'casters must offer channels a la carte to MSOs"
1638:"Comcast and cable TV giants sue Maine over new law aimed at a la carte access"
512:
practice of mandatory bundling by broadcasters as an influence on this policy.
380:
270:
The case for a la carte has centered on cost savings for subscribers. In 2006,
194:
169:
2207:
2019:
1976:
319:
316:
130:
492:
Apple followed Amazon's lead when it made a March 2019 announcements of its
21:
2041:"DirecTV: Time Warner Cable Trying to Force Deal for Dodgers Cable Network"
504:
subscription streaming service and access their content from one location.
497:
449:
441:
417:
206:
45:
640:"Pick and pay TV is here, but at current prices, it might not be worth it"
1663:"Comcast sues Maine to stop law requiring sale of individual TV channels"
723:
470:
286:
113:
581:"Apple TV Channels is an a la carte way to watch your favorite networks"
1688:"Maine sued for the second time in a week over 2019 cable law overhaul"
1402:
1292:. Vol. 1. Westport, Connecticut: Greenwood Press. pp. 69–76.
395:
353:
157:
2181:
NCTA (National Cable Television Association) Issue Brief on A La Carte
2131:"Amazon's a la carte TV service, Amazon Channels, adds CBS All Access"
2104:"Disney streaming venture could make bloated pay-TV bundles obsolete"
1529:
1460:
970:"Sun moves Tdsat against Trai's a la carte pricing for non-CAS areas"
916:
802:
1892:"The Welfare Effects of Bundling in Multichannel Television Markets"
612:"High channel prices overshadow arrival of a la carte TV in Canada"
585:
553:
508:
198:
457:
of their content beyond "linear" television, broadcasters such as
1873:"A la carte TV pricing would cost industry billions, report says"
1374:
772:"Broadcasters to give channels a la carte to DTH operators: Trai"
474:
453:
421:
398:
during the second quarter of 2013. ESPN and its majority parent,
249:
138:
1889:
1426:"Viacom CEO Philippe Dauman Doesn't Expect A La Carte Cable Law"
944:"Zee joins Sony to challenge Trai's regulation in non-CAS areas"
223:
Cable Television Consumer Protection and Competition Act of 1992
1953:"Rising TV Fees Mean All Viewers Pay to Keep Sports Fans Happy"
1500:"More Than One in Five Households Has Dumped the Cable Goliath"
2190:
1825:
1823:
996:"A la carte Tariff Order valid from 1 Dec, Tdsat refuses stay"
1738:"TV Industry Fiercely Opposed to A la Carte Channel Offering"
692:"Canadian gov't to push cable providers to unbundle channels"
684:
486:
477:. These services feature their networks' respective content
326:
off the air, although not all religious broadcasters agreed.
294:
105:
1864:
1583:"Senator John McCain Introduces New "A La Carte" Cable Bill"
386:
The most pronounced example was the national sports network
1820:
1516:
387:
242:
125:
79:
Canadian Radio-television and Telecommunications Commission
1332:
1154:"DTH players told to offer pay channels on la carte basis"
746:"Hathway announces cable TV subscriber rates and packages"
180:, and stated in proceedings on July 22, 2010 that "in the
1946:
1944:
1762:
1344:
462:
458:
238:
48:—the practice of relying on television services that are
543:
541:
507:
Despite having used the term "A la carte" in promotion,
1475:"Cord cutting: A la carte channels looking more likely"
2008:"A Struggling ESPN Lays Off Many On-Air Personalities"
1941:
1361:
1022:"TDSAT refuses stay on Trai directive to broadcasters"
1980:; James Andrew Miller; Steve Eder (August 26, 2013).
1771:"US minority groups oppose FCC "a la carte" proposal"
1557:"McCain bill would create 'a la carte' cable pricing"
1232:"Tata Sky allows subscribers to make their own packs"
665:"CRTC gives TV subscribers more control, with a catc"
538:
1370:"In switch, cable operators want to go "a la carte""
1340:"Episode 488: The Secret History Of Your Cable Bill"
1180:"Now Airtel Digital TV announces a la carte pricing"
406:
the functional equivalent of an a la carte channel.
1730:
1548:
1389:
858:
116:television is free with no monthly payments, while
1829:
1451:"Intel's a la Carte TV Plans Are Still Slow-Going"
656:
52:over the internet, and to the bundling of various
1890:Gregory S. Crawford; Ali Yurukoglu (April 2011).
830:"DTH companies can pick channels of choice: TRAI"
662:
302:, which represents broadband and cable services.
2205:
1102:"A la carte menu for DTH subscribers at Rs. 150"
496:service, which will allow users of Apple's free
1931:"Why Unbundling Cable Would Not Save You Money"
1788:
1575:
719:"CAS: pay channel broadcasters win first round"
2038:
1982:"To Protect Its Empire, ESPN Stays on Offense"
1797:"Controversial TV Preacher Jerry Falwell Dies"
1395:
1049:"Trai wants to cap cable rate at Rs 250/month"
1046:
174:Telecom Disputes Settlement Appellate Tribunal
1950:
1794:
1522:
1367:
1282:
1258:"Reliance Digital TV unveils a la carte menu"
912:"TRAI announces new tariff for non-CAS areas"
213:launched a la carte options in January 2011.
1768:
1589:(Press release). May 9, 2013. Archived from
1525:"Push for 'a la carte' cable picks up steam"
1448:
1423:
469:have launched streaming services, including
2005:
1554:
33:in which customers subscribe to individual
2082:
1928:
1710:
1128:"Pick and pay DTH channels from September"
1074:"TRAI seeks SC nod to notify tariff order"
574:
572:
129:world to couple a la carte pricing with a
44:The term has subsequently been applied to
2155:"Sling TV misleads cord cutters with its"
2006:Drape, Joe; Barnes, Brooks (2017-04-26).
1870:
1713:"F.C.C. Supports à la Carte Cable Option"
1306:
1206:"Videocon d2h offers channels a la carte"
859:Sreejiraj Eluvangal (September 4, 2007).
716:
432:households for four consecutive seasons.
233:, for example, obtained distribution for
1970:
1704:
1685:
1635:
1497:
1276:
578:
25:, "from the menu"), also referred to as
2224:United States communications regulation
2101:
2083:Villarreal, Yvonne (January 17, 2016).
1686:Shepherd, Michael (13 September 2019).
1660:
1636:Shepherd, Michael (September 9, 2019).
1472:
609:
569:
2206:
1314:"Cable Carriage of Broadcast Stations"
798:"Broadcasters must offer all channels"
637:
527:Family and Consumer Choice Act of 2007
500:on numerous devices to bundle various
2229:Cable television in the United States
2185:Canadian pick-and-pay offerings from
2128:
2057:
579:Hardawar, Devindra (March 25, 2019).
435:
373:
225:, which enabled broadcasters to seek
146:Telecom Regulatory Authority of India
1368:Yinka Adegoke (September 27, 2011).
861:"Trai unbundles TV channels for DTH"
633:
631:
605:
603:
1523:Leslie Cauley (February 12, 2006).
1424:Eriq Gardner (September 24, 2013).
1396:Kelli B. Grant (January 27, 2012).
1320:. Federal Communications Commission
836:. September 3, 2007. Archived from
806:. September 4, 2007. Archived from
663:Steve Ladurantaye (July 20, 2012).
638:Harris, Sophia (December 1, 2016).
13:
2102:Lazarus, David (August 11, 2017).
1951:Brian Stelter (January 25, 2013).
1922:
1883:
1498:Pressman, Aaron (April 15, 2016).
610:Lazarus, David (9 December 2016).
14:
2240:
2174:
628:
600:
276:Federal Communications Commission
172:, challenged TRAI's order in the
2129:Perez, Sarah (January 5, 2018).
2058:James, Meg (September 6, 2016).
2039:Alex Ben Block (April 5, 2014).
1449:Jared Newman (January 3, 2013).
1047:Sanjay K Singh (July 22, 2010).
313:National Congress of Black Women
216:
2147:
2122:
2095:
2076:
2051:
2032:
1999:
1711:Ken Belson (February 9, 2006).
1679:
1654:
1629:
1605:
1491:
1473:Lazarus, David (May 31, 2016).
1466:
1442:
1417:
1250:
1224:
1198:
1172:
1146:
1120:
1094:
1066:
1040:
1014:
988:
962:
936:
904:
878:
852:
822:
790:
63:
1871:Meg James (December 4, 2013).
1795:John Eggerton (May 12, 2007).
764:
738:
710:
227:compensation from distributors
156:Several broadcasters, such as
1:
2198:and Manitoba Telecom Services
1769:Peter Kaplan (May 30, 2008).
532:
305:
260:
1555:Dan Nowicki (May 20, 2013).
920:. 2007-10-05. Archived from
7:
2047:. Guggenheim Digital Media.
1929:Josh Barro (May 15, 2014).
1661:Brodkin, Jon (2019-09-10).
717:D Govarda (June 29, 2003).
515:
10:
2245:
1830:Laura Martin; Dan Medina.
285:In May 2013, U.S. Senator
265:
144:On September 3, 2007, the
97:
1807:Reed Business Information
72:
29:, is a pricing model for
17:A la carte pay television
1587:U.S. Senator John McCain
1436:Guggenheim Digital Media
410:Regional sports networks
135:Multiple-system operator
93:
1398:"Cable TV on the Cheap"
1286:Battleground: The Media
1158:The Hindu Business Line
444:—the practice of using
400:The Walt Disney Company
274:, then chairman of the
31:pay television services
2219:Television terminology
2045:The Hollywood Reporter
1910:Cite journal requires
1897:. Stanford University.
1802:Broadcasting and Cable
1431:The Hollywood Reporter
324:Christian broadcasters
2195:Rogers Communications
1843:Needham & Company
1617:legislature.maine.gov
340:Needham & Company
193:subscribers using an
98:Further information:
1349:. September 27, 2013
1262:IndianTelevision.com
1236:IndianTelevision.com
1210:IndianTelevision.com
1184:IndianTelevision.com
1000:IndianTelevision.com
974:IndianTelevision.com
948:IndianTelevision.com
890:Indiantelevision.com
776:IndianTelevision.com
750:IndianTelevision.com
2187:Shaw Communications
1852:on November 2, 2013
1750:. February 25, 2006
1593:on October 29, 2013
1002:. November 22, 2007
950:. November 21, 2007
778:. September 3, 2007
752:. September 3, 2003
446:internet television
430:Southern California
414:Los Angeles Dodgers
362:Stanford University
211:Reliance Digital TV
100:Television in India
60:viewing mechanism.
35:television channels
2012:The New York Times
1986:The New York Times
1957:The New York Times
1935:The New York Times
1832:"The Future of TV"
1717:The New York Times
1264:. January 24, 2011
1238:. January 10, 2011
1212:. January 22, 2011
1186:. January 18, 2011
1082:. January 26, 2011
1079:The Indian Express
1028:. January 15, 2008
698:. October 13, 2013
670:The Globe and Mail
436:Streaming services
404:streaming service:
392:The New York Times
374:Sports programming
293:On June 15, 2019,
195:addressable system
150:conditional access
2109:Los Angeles Times
2089:Los Angeles Times
2064:Los Angeles Times
1877:Los Angeles Times
1692:Bangor Daily News
1642:Bangor Daily News
1563:. Gannett Company
1479:Los Angeles Times
1299:978-0-313-34167-0
1026:Financial Express
976:. January 4, 2008
892:. October 4, 2007
616:Los Angeles Times
494:Apple TV Channels
448:services such as
254:Time Warner Cable
209:, In Digital and
203:Airtel digital TV
19:(from the French
2236:
2169:
2168:
2166:
2165:
2151:
2145:
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2142:
2141:
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2055:
2049:
2048:
2036:
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2026:
2003:
1997:
1996:
1994:
1992:
1978:Richard Sandomir
1974:
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1939:
1938:
1926:
1920:
1919:
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1908:
1906:
1898:
1896:
1887:
1881:
1880:
1868:
1862:
1861:
1859:
1857:
1851:
1845:. Archived from
1839:Needham Insights
1836:
1827:
1818:
1817:
1815:
1813:
1792:
1786:
1785:
1783:
1781:
1766:
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1757:
1755:
1748:Associated Press
1734:
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