A La Carte Regulation and the Failure of Good Intentions

by Adam Thierer on July 11, 2008 · Comments

Jeff Eisenach, Chairman of Criterion Economics, and I have just released a new article about the perils of a la carte regulation in the Federalist Society’s journal Engage. In “A La Carte Regulation of Pay TV: Good Intentions vs. Good Economics,” we argue that: “From a policy perspective, a la carte regulation is worse than a solution in search of a problem; it is a problem waiting to happen.” We show that the pay TV marketplace is functioning quite efficiently and that consumers have more choices and content diversity at their disposal than ever. A la carte mandates, we argue, would destroy that diversity and likely put pressure on prices to go up, contrary to the goals of the backers of a la carte.

We also discuss how a la carte is being proposed a tool of social regulation / speech control, with backers labeling it a way of “cleaning up cable.” We explain why that is not going to work and why, even if it did, it would be a betrayal of the First Amendment.

This new article can be found online here and it is embedded down below as a Scribd file:

Tagged as: "pay TV", a la carte, cable, First Amendment, indecency, Jeff Eisenach, satellite, Thomas Sowell

Comments Posted in: First Amendment, Free Speech & Online Child Safety, Telecom & Cable Regulation

  • Very interesting read indeed, I belive that there is an older version to this,
  • donnellobrien
    The article is fatuous and glosses over the very real fact that people want *real* choices, not those dictated by cable companies supporting content that would not survive with out their bundling strategies. The argument about diversity is also pretty thin. Yes, there is diversity, but again, how many religious stations must there be and why do I have to have all of them? Why are there so many shopping and sports channels? I have over 100 channels and watch with any consistency 8 or 9 of them. The others get a micro-second of my time when channel surfing. The writer is correct that much of this debate will be made moot by internet access to these programs; mostly because cable companies refused to budge and adapt their practices to accommodate their customers wishes.
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