Number: RL33338
Title: The FCC's "a la Carte" Reports
Authors: Charles B. Goldfarb, Resources, Science, and Industry Division 
Abstract: The Federal Communications Commission (FCC) has released two reports on a la carte pricing of cable television networks that reach contradictory conclusions. On November 24, 2004, then-chairman Michael Powell issued a report (Initial Report) that concluded that requiring cable and satellite operators to offer cable networks in an a la carte fashion , either as a replacement for the current expanded basic service tier or as an optional alternative to that tier , would likely increase the monthly cable or satellite bill for most households and reduce program diversity. On February 9, 2006, current FCC chairman Kevin Martin released a "Further Report" that appears to contradict the first one, concluding that for the 40% of cable households (and 100% of satellite households) that already receive digital service, a la carte purchasing is likely to lower the monthly bill. Neither of these reports was supported by the full Commission and each was released as an unofficial report.
Pages: 17
Date: March 30, 2006