Dive brief:
- The idea for an "a la carte" TV programming option is still circulating, but networks and many advertisers are strongly against the idea. And with good reason: The results could be disastrous for both industries.
- Offering consumers a la carte options in pay TV would cut the number of stations considerably. Analysts predict that only about 20 stations would be able to pull enough revenue in to survive.
- With fewer stations viable, TV advertising costs would skyrocket.
Dive insight:
The industry may never allow a la carte programming to happen, but the repercussions would be keeping in line with current trends. Because viewers wouldn't want to pay for whole networks for one show, more viewing would happen per-show online with platforms like AOL and Hulu. This trend is happening anyway, and an a la carte model would likely send more ad dollars in that direction. This issue should make advertisers reevaluate whether they focus their attention on a network or the content itself, wherever it lives.
