Cable 'a la carte' chatter returns as smaller MSOs call for programming option

Some smaller cable MSOs are renewing calls for programmers to allow them to offer a la carte programming options to subscribers.

Quoting executives from Suddenlink Communications and Mediacom Communications, Reuters reports that some cable operators, including Time Warner Cable (NYSE: TWC) and Cablevision (NYSE: CVC), are "searching for a business or regulatory strategy to lower escalating programming costs." While the challenges cable MSOs face in retaining pay TV subscribers has some operators renewing calls for a la carte programming, it's very unlikely that the industry's model of selling broad packages of cable networks will change any time soon.

Since Comcast (Nasdaq: CMCSA) is vertically integrated, and owns networks such as Versus and USA Network, the nation's largest MSO would fight any attempt to break up expanded basic and digital basic programming packages that it relies on for distribution. Some smaller cable MSOs may continue to push for more flexibility in the way they package subscription networks, but their contracts with major programmers such as ESPN parent Walt Disney Co. (NYSE: DIS) and Turner Broadcasting prohibit a la carte distribution.

While it would be difficult for cable MSOs and satellite distributors to sell networks a la carte, more distributors may experiment with selling smaller and less expensive packages of networks similar to the TV Essentials package that Time Warner Cable offers in some markets.

For more:
- Reuters has this story

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