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The FCC's "a la Carte" Reports (CRS Report for Congress)

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Release Date March 30, 2006
Report Number RL33338
Report Type Report
Authors Charles B. Goldfarb, Resources, Science, and Industry Division
Source Agency Congressional Research Service
Summary:

The Federal Communications Commission (FCC) has released two reports ona la carte pricing of cable television networks that reach contradictory conclusions.On November 24, 2004, then-chairman Michael Powell issued a report (InitialReport) that concluded that requiring cable and satellite operators to offer cablenetworks in an a la carte fashion , either as a replacement for the current expandedbasic service tier or as an optional alternative to that tier , would likely increase themonthly cable or satellite bill for most households and reduce program diversity. OnFebruary 9, 2006, current FCC chairman Kevin Martin released a "Further Report"that appears to contradict the first one, concluding that for the 40% of cablehouseholds (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 wassupported by the full Commission and each was released as an unofficial report.