Cable Channels

Cable Channels

In general, a cable television operator has the right to select the channels and services that are available on its cable system. With the exception of certain channels like local broadcast television channels which are required to be carried by federal law, the cable operator has broad discretion in choosing which cable channels will be available and how those cable channels will be packaged and marketed to subscribers. In order to maximize the number of subscribers, the cable providers usually selects cable channels that are likely to appeal to a broad spectrum of viewers.

Tiers

Cable companies generally are required to offer a basic service tier. The company generally requires all subscribers to purchase this tier before purchasing additional video programming. The basic service tier is required to include, at a minimum, the local broadcast television stations and the public, educational, and governmental (PEG) access channels that the operator may be required to offer pursuant to an agreement with the local government. After complying with these minimum requirements, the cable operator may offer additional programming as part of the basic service tier.

With the exception of programming that is required to be carried on the basic tier, the cable operator and the entity that owns the cable channels or programming service negotiate the terms and conditions for carriage on the cable system. Terms may include whether the cable channel or service will be offered in a package with other programming or whether the channel or service will be offered on a per-channel or pay-per-view basis.

Per-Cable Channels ("A La Carte") and Pay-Per-View Programming

Per-channel or “à la carte” programming means cable channels are offered on an individual per-channel basis rather than as part of a package or tier of programming. Cable television operators are not required to offer channels on an à la carte or individual basis. However, cable operators are free to offer channels other than those required to be on the basic tier on an à la carte basis. For example, premium movie services are often offered on an individual basis rather than as part of a package.

“Pay-per-view” means there is a separate charge for each program or event. For example, a separate charge may be incurred for each movie or sports event the viewer chooses.

Cable operators, as well as other entities that offer video programming services to subscribers (such as satellite television providers), continue to have broad discretion to determine if services are offered on a per- channel or pay-per-view basis and how programming will be packaged and marketed to consumers.

For example, if a cable company offers MTV in a package with other channels and the subscriber wants only MTV, the subscriber must purchase the entire package. If the company, however, chooses to offer MTV à la carte, a subscriber may purchase just MTV.