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FCC Paper Confirms Consumer Groups’ Findings: More Diversity in Programming Through Cable Channel Choice System

The Consumer Federation of America (CFA) and Consumers Union (CU) recently conducted an analysis of a just-released paper by Keith Brown of the FCC’s Media Bureau, finding that Brown’s paper confirms what consumer groups have been saying for years – a cable channel choice (or “a la carte”) system would bring greater diversity in programming onto the cable system. 

CFA and CU also found that Brown’s data contradict the findings of the November 2004 FCC report that reached the opposite conclusion. Brown’s economic analysis counters the cable industry’s claims, which the FCC has blindly accepted, that the current cable system fosters minority programming better than an a la carte system would. In fact, niche and minority-targeted programming can develop, grow and prosper more in a world where consumers have more choice – not only the tiers that exist now, but new themed tiers and the ability to choose channels individually. 

Although the cable industry and the FCC have claimed that shows need to reach 50-70 million households to survive, Brown’s data show that shows need only reach 15 million households to be successful. In fact, even this 15 million figure may be too high, since Brown’s analysis focused on a 70% probability of success, rather than the 50% rate that is closer to the industry’s success rate.

By either standard, there is no doubt that in a world where consumers can choose channels individually or through existing and new bundles, minority and niche programmers would do better, because programs that currently don’t have the clout to make it onto the expanded basic tier could still be offered individually, potentially attracting many more viewers. 

For additional information on cable policy, check out the cable section of What’s at Stake.  For more information on the cable channel choice/cable a la carte system, read this CU/CFA white paper and, for a more technical analysis, the CU/CFA reply comments in the FCC a la carte proceeding.