With Genachowski, Adieu To A La Carte? [Multichannel News]
Yesterday, the Wall Street Journal and New York Times reported that President-elect Barack Obama intends to nominate Julius Genachowski as the next chairman of the Federal Communications Commission. Currently a venture capitalist in the DC area, Genachowski was a Harvard Law School classmate of the president-elect and is widely regarded as tech-savvy, as he helped craft the Obama campaign's Internet strategy.
This article in Multichannel News profiles the likely changes at the FCC regarding a la carte cable programming under a Genachowski chairmanship. While a la carte has been a pet peeve for outgoing Chairman Kevin Martin, the issue is likely to take a back seat to other issues according to the Commission watchers quoted in this article.
Even though some would say this is a loss for consumers, I don't agree. I've written here before that a la carte initially sounds like a great idea -- being able to pick the cable networks you want on your lineup and avoid having to pay for the ones you don't watch. But, a la carte fails to take into account that cable programming relies on advertising dollars, which is driven by viewers many of whom surf through the channels and happen to land on a particular network. Take away those viewers, advertising revenue dries up, and one of two things has to happen -- either consumers have to pick up the tab or the network has to make due with much less.
Frankly, in this economy, even more networks would simply cease to exist, limiting choice and diversity. The current cable distribution model provides for a wide-ranging lineup of programming at a very good price. Think about the endless entertainment and information options available on expanded basic cable for about $2 a day. Add all the digital offerings and it's still less than $3 a day.
I look forward to a fresh regulatory approach at the FCC under a Chairman Genachowski. He brings great credentials and life experience to the job and I'm hopeful that the key regulatory agency will focus on the big, important subjects confronting telecommunications policy. Let's quickly begin to discuss the important policy issues openly and honestly. For cable, that includes things like net neutrality, broadband deployment, our own digital conversion, and network management practices. We can work together to set policies that encourage investment, nurture competition and result in world class, 21st century telecommunications services for the American people.
We all want that.
And please. No more midnight meetings!