Advanced Search

Save Or Share This Report

For CMO Professionals

Cable À La Carte Pricing Creates More Problems Than It Solves

Strict À La Carte Will Confuse Consumers And Fail To Achieve Desired Outcomes

June 4, 2007

Primary author headshot


Why Read This Report

In late April, FCC Chairman Kevin J. Martin trumpeted one of his favorite ideas: à la carte cable pricing, wherein consumers choose which cable channels they want rather than accepting the bundles that cable providers offer. It sounds like a sensible idea until you ask consumers what they would do with the option. Only half are interested, but their estimates of what they would pay aren't realistic. On average, current cable subscribers said that they would only spend $24 a month on 26 channels, 53% less money than they pay today to get one-fourth the number of channels. To satisfy the FCC and avoid legislation that would disorient consumers, cable operators should offer the benefits of à la carte pricing through smarter bundling of family, sports, or news programming in addition to traditional tiered packages.

Get Access

Already a Client?

Log in to read this document.

Become a Forrester Client

Timely and relevant, Forrester's RoleView research aligns to 13 leadership roles across business and technology management. Our expertise in customer experience, mobile, digital business, and big data will help your teams win in the age of the customer. Contact us to learn more.

Purchase Report

This report is available for individual purchase ($499 USD).


Recommended Research