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Forrester: Consumers’ pricing estimates for à la carte warped

Tue, 06/12/2007 - 9:10am
Traci Patterson

About half of American consumers are interested in à la carte cable pricing, but their estimates of what they would pay for the service aren’t realistic, according to the Forrester Research Inc. report, “Cable à la carte pricing creates more problems than it solves.”

FCC Chairman Kevin Martin has touted à la carte - where consumers choose which cable channels they want instead of accepting the bundles that cable providers offer - for several months now.

Forrester found that, on average, current cable subscribers would spend $24 a month for 26 channels, which is 53 percent less than they pay today to get one-fourth of the number of channels. To appease the FCC and avoid legislation that could disorient consumers, Forrester is suggesting that cable operators offer the benefits of à la carte pricing through smarter bundling of family, sports or news programming, in addition to traditional tiered packages.

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