Cable chief bets on a-la-carte pricing.No one can accuse Cablevision Systems' chairman, Charles Dolan, of pandering to popular opinion. The U.S. cable exec, who created the Home Box Office (HBO) pay-TV channel in the 1970s, is at odds with just about every other cabler and satellite company in the U.S. after siding with the Federal communications authority (FCC) chairman Kevin Martin in support of a-la-carte pricing. He claims that the pricing plan--which would allow viewers to pay individually for networks they want rather than require them to purchase bundled groups of channels--would result in more affordable service and greater programming options. Dolan was quoted as saying that the FCC chairman's approach "is consistent with the best traditions of retailing in this country." This opinion is nothing new for Dolan, though, who is well-known in the industry for being something of a lone wolf and has shown support for a-la-carte pricing in the past, having shared his view in a U.S. Senate hearing in 2003. Opponents of the pricing plan worry that a-la-carte pricing would hurt the cable and satellite business and violate the First Amendment. One major opponent, National Cable and Telecommunications Association chairman Kyle McSlarrow, said in a statement that a switch would "hurt consumers by increasing prices, decreasing choice and reducing diversity in TV programming." |
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