Bad news for consumers as a-la-carte lawsuit proceeds

A federal lawsuit challenging cable operators and programmers on the issue of a-la-carte programming has managed to rise from the dead, as a Los Angeles-based federal judge has is allowing the case to proceed after originally dismissing it. Multichannel News recently reported that District Judge Christina Snyder ruled late last month that the case would move forward.

Snyder had originally dismissed the plaintiffs case against several cable operators and programmers in March, but later reinstated it after they amended their claims.

Judge Christina Snyder, in a June 25 ruling, decided that the cable operators, direct-broadcast satellite companies and studios that were sued had not proved their arguments. Those companies alleged that the lawsuit, filed on antitrust grounds, did not adequately demonstrate that consumers were injured by the business practices of the defendants. In written and oral arguments on June 16, they also questioned the standing of the consumers to sue.

In one of my early posts here, I explained why I believe that a-la-carte is a bad deal for consumers. The current programming lineup model provides for a tremendous programming diversity. An a-la-carte programming model would lead to the extinction of many existing networks and many new niche networks would never get the funding to launch.

Misguided consumer advocates have tried to advance government mandated a-la-carte through the usual policy-making routes like Congress and the FCC. Thus far, they have been unsuccessful in these attempts because members of Congress who focus on telecommunications issues and a majority of the FCC commissioners understand the consequences of government mandated a-la-carte.  Now they're angling for government mandated a-la-carte by judicial fiat.

It's an unfortunate development potentially advancing a flawed policy that doesn't benefit consumers. If successful, this lawsuit opens the door for a drastically dumbed-down television landscape, not to mention higher bills and less service for customers.

Comments

[Wyatt Ditzler]

I have gone back and forth with this topic at the Cable Tech Talk blog.

How do you see a-la-carte being a poor choice for consumers? Specifics would be nice to see other than the vague, It would be bad doom and gloom.

[Michael Willner]

I posted this a couple of months ago. I think it answers the specific reasons why I oppose a-la-carte.

http://www.michaelsinsight.com/2008/05/cable-a-la-cart.html