HDTV Expert - A La Carte TV: No Blue Plate Special?
A Needham and Co. analyst estimates that a la carte pay TV delivery could eliminate at least 124 smaller channels, costing $80B to $113B in U.S. consumer value, while a typical cable channel requires roughly 165,000 annual viewers just to break even at $280 million per year in operating costs. Cord-cutting continues to accelerate, with Netflix approaching 30 million subscribers and services like Aereo charging around $10 per month to stream over-the-air broadcasts via the Internet. Canada's upcoming mandate to unbundle TV channel packages will serve as a real-world test of whether a la carte models benefit or burden consumers.