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Cable bills to focus on a LA Carte prices

Boston, MA 05/15/2013 (wallstreetpr) – The cable bill introduced by US Senator John McCain calls for cancellation of umbrella pricing for bundle of programmes and advises to introduce pay per channel pricing. The Senator advocates that the subscribers should be averted from paying for those channels which they never watch or not interested in watching.

Growth in price of packages

The average cable bill for the popular packages like that of expanded basic service had been increasing gradually through the years. The increase in bills had occurred at the rate of 6.5 percent annually from 1995 to 2011, resulting in an increase of price from $22.25 to $57.46 per month. On the other hand, the number of channels offered through such expanded basic service had increased from 44 to 124. The huge number of channels offered through such packages proves that most of these channels are not watched at all by the consumers.

Value to customers

However, results are mixed on whether a La Carte pricing of channels would prove higher value to customers. This is because the customers would have to pay $10 each for 10 channels in the place of $10 for 100 channels through bundled packages. Thus, watching TV channels through popular packages like expanded basic services prove to be much more economical and value added to the customers than the proposed a La Carte pricing.

Sports Blackouts

The cable bill is, however, based on the reasoning that savings could be induced through removing those channels which broadcast games from the menu. This would ensure that unnecessary channels are not billed on the television viewers.

The Federal Communications Commission is called for prevention of such sports blackouts which prevents the cable and satellite companies from showing the pro sports games, when TV broadcasts of such games are blocked by contract.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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