Monday, January 17, 2011

Roku gets its first cable channel. Can la carte packages be far behind?

It can best be described as the age-old battle of cable TV. In order to get the channels that you want, youre generally forced into paying for a package that contains about 90 percent programming that you couldnt possibly care less about. Want to watch something on The History Channel? Youre going to have to pay for Rachel Rays yummo-loving face on your television. Sorry folks thats just how it goes.

But maybe not for very much longer. At least according to news that was just released today about Roku.

According to paidContent, Roku will soon begin carrying its first official cable channel WealthTV. For $2.99 per month, you can sign up to view any of the WealthTV content that youd see on a traditional cable package right on your Roku box, just as if you were watching via a typical cable connection.

But dont get your hopes up too early. As paidContent notes, its possible only because WealthTV doesnt have (nor is it parented by another company which would have) deals with cable operators. According to WealthTV co-founder Robert Herring:

Were probably the only one in the industry who can do what were doing right now. Its going to be a chance to lead.

And indeed it will. That very statement is the one that other broadcasting companies and stations need to bear in mind. The tables are one step closer to being turned, and one of their brethren has just stepped across the line that otherwise has never been crossed.

But the battle has only just begun. Weve seen bickering from both sides where cable and networks are concerned. As a for! mer subs criber to Dish Network, I was understandably less than pleased when Dish and Viacom went to battle over the rates that Dish would pay to carry Viacom programming. Though a settlement was eventually reached, this is precisely the sort of bickering that can confound our dreams of a la carte programming.

Then, of course, theres the matter of TV networks that like to set a value on their programs and wont budge away from them. Surely you remember the troubles that Apple had on the launch of the new version of the Apple TV. While ABC and Fox in the US were more than happy to go the $.99 route for their shows, other networks felt that the price was devaluing their products and thus wouldnt offer them to consumers at that price.

Herein lies the problem that weve talked about a few times before at TNW The consumer, not the provider, sets the value of a good or service. If youre willing to sell your show for $5 per episode, but nobodys buying, thats not devaluing your product. Your product wasnt worth the price to begin with.

And so, as the saying has gone, the battle may be won but the war is far from over. Were still fighting and clawing, as consumers, to pay for what we want without taking what we dont. Perhaps this is one place where television can learn from the music industry. We didnt want to buy albums anymore, so we didnt. Sales of singles skyrocketed.

Lets see if TV can tune in the station carrying that message.Techmeme


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