Cablevision’s chairman, bucking the cable industry, renewed suppo...
Cablevision’s chairman, bucking the cable industry, renewed support for a la carte, to reduce prices and expand programing options. Charles Dolan said he backed controversial comments Tues. by FCC Chmn. Martin that letting subscribers select the channels they want…
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would benefit them (CD Nov 30 p1). Dolan was joined in his comments by AT&T, which plans to start pay TV sales next year, and USTelecom. “If consumers want a la carte programming, we will be happy to offer it,” AT&T said in a statement. The firm’s stance is dependent on being “able to obtain access to the programming in that manner,” said AT&T. Dolan’s statement said: “Our experience indicates a la carte will result in more affordable service for all. We hope Chairman Martin’s remarks encourage a move by the industry in this direction.” Analysts, however, were skeptical that Dolan’s comments represented the company’s viewpoint. Dolan has made similar comments before, including at a 2003 Senate Commerce Committee hearing on media ownership. “Unwanted programming is being forced into the home, particularly sports programming,” Dolan testified then: “The cable bill at the end of the month is increasing against the customer’s wishes.” NCTA Pres. Kyle McSlarrow, speaking at the same Senate decency hearing as Martin, called mandatory a la carte “a very dangerous idea.” Cablevision and NCTA, of which Cablevision is a member, declined to comment. “Dolan’s opinion notwithstanding, [Cablevision COO] Tom Rutledge controls the cable company’s operations, and we do not think he would support such a position,” wrote Bear Stearns’ Raymond Katz. His note was titled: “Dolan’s a La Carte Comments: Skepticism + a Grain of Salt.” The details of Dolan’s statement “are really murky,” said Vamsi Sistla of ABI Research. Still, he predicted cable may have to move toward a la carte as subscribers acquainted with on demand viewing and customization of Web content demand it. “Customers aren’t going to put up with these packaged deals for too long,” said Sistla: “And that’s what the cable industry is scared about.” - JM