Senator John McCain (R-AZ) has introduced the Television Consumer Freedom Act of 2013, which calls for “a la carte” cable television and the elimination of sports blackouts. The aim is to give consumers more control — and hopefully lower total prices — over their cable bills by allowing them to buy the channels they want and ignore the ones they don’t.
One of the reasons cable and satellite television prices are so high is that companies bundle their offerings, often forcing consumers to pay for several channels they don’t want in order to get the ones that they desire. For example, there are many ESPN fans that don’t give a rats ass about Disney or AMC channels. Since Disney owns the whole lot, it strong arms cable and satellite providers into carrying all of them, passing the entire cost to consumers. Cable news channels are another example. While I enjoy and recommend watching both Fox News and MSNBC in order to hear what both sides are saying, each network has viewers that would never watch the other. Yet, the majority of those viewers are paying for both networks.
Here’s a clip from Senator McCain’s press release on the Television Consumer Freedom Act of 2013:
Mr. President, today I am introducing the Television Consumer Freedom Act of 2013. This legislation has three principal objectives: (1) encourage the wholesale and retail “unbundling” of programming by distributors and programmers; (2) establish consequences if broadcasters choose to “downgrade” their over-the-air service; and (3) eliminate the sports blackout rule for events held in publicly-financed stadiums.
For over 15 years I have supported giving consumers the ability to buy cable channels individually, also known as “a la carte” — to provide consumers more control over viewing options in their home and, as a result, their monthly cable bill.
Excusing that period of time when he totally caved to the Tea Party, I’m generally a fan of Senator McCain. As a boxing fan, I love his work on the Muhammad Ali Boxing Reform Act. I’m totally digging what he’s doing with the Television Consumer Freedom Act of 2013. While I’m cynical enough to believe that cable and satellite lobbyists will squash the act, at least McCain is trying to do something about these companies (like crap bag Time Warner Cable) and bringing attention to the issue.
I’d love to hear what you think about the Television Consumer Freedom Act of 2013. Do you think it will accomplish anything? Fire away in the comments section (please)!
Considering Obama just appointed a former cable lobbyist to head the FCC…I’m sure this won’t make it to a vote ever.
Good idea though. If anything I’m thrilled about the sports blackout blurb in public financed stadiums. I don’t think the NFL/MLB/NBA should black out any game locally if public funds were used.
A la carte is interesting though. Would the cable companies actually pass off savings to a consumer? If for instance I decided to subscribe to pay TV strictly for ESPN and NFL network would I be forced to buy all of the ESPN stations? All of the Disney owned properties? I know that my question is contrary to a la carte but large US corporations have also been defining the term unlimited in a manner that John Q Public wouldn’t define it.
I’ve read about a-la-carte happening in Europe and the consumers only getting a bit of savings. I’d like to do some research on the models (business, not Swedish swimsuit) offered over there.
I don’t know how well that correlates to the US market though. Sports for instance is a HUGE business here. Aside from soccer and some F1, what is there in Europe that can command such a huge draw and money from a cable provider?