The National Communications Commission’s proposal of implementing an “a la carte” option for cable TV subscribers has been opposed by cable TV providers, as they said it would lead to confusion over how to charge subscribers.
The commission held a public hearing on Thursday last week on the tiered pricing scheme for cable TV services, which is to be implemented next year.
Cable TV subscribers pay a flat rate, which gives them access to more than 100 channels, while the commission proposed five different service plans, with one of them being an “a la carte” option.
The plan allows subscribers to choose and pay for the channels they want to watch, in addition to must-carry channels. Cable operators cannot deny subscribers the right to do so, according to the proposal.
The plan also give subscribers a week-long free trial period for the cable service they choose.
The hearing was attended by representatives from cable TV providers. They opposed the plan that would give subscribers maximum flexibility in subscribing to the channels of their choice.
Each provider has about 100,000 subscribers, Cable Broadband Institute in Taiwan chief executive Claudia Peng (彭淑芬) said, adding that should subscribers be given the choice of only paying for the channels they want to watch, it would result in an extremely high number of channel combinations which no billing or cable system can currently handle.
Peng said that the association has reservations about giving subscribers a mandatory free trial, saying that the policy should not apply to cable TV services.
Peng said that the association supports the third and fifth service plans.
The third plan caps the service fee at NT$600 per month for all channels and subscribers pay extra for the additional channels they subscribe to.
The fifth plan does not cap the service fee and gives cable providers the liberty to decide the tiered-pricing plans they wish to offer their subscribers.
The nation’s two largest multiple service operators — Kbro Co and China Network Systems (CNS) — also sent representatives to the hearing.
CNS supported the third and fifth service plans, saying that the fees it collects from the subscribers pays for the operation of its systems and content authorization fees.
Channels with only a few subscribers might not be able to survive if subscribers go for the a la carte plan, the company said.
Kbro, on the other hand, said that the fifth plan is viable, but added that the standards used by local governments to review the pricing schemes of cable TV services have to be more specific.
The nation has an open market for audio-visual content, particularly with the entrance of over-the-top content providers, Satellite Television Broadcasting Association secretary-general May Chen (陳依玫) said.
“As channel operators, we care about copyright infringement and whether we are able to collect reasonable fees for the content we provide. It could affect our capability to produce and broadcast quality programs,” Chen said.
Chen said that some channel operators might be affected by the tiered pricing mechanism.
She said that the policy lacks legal basis, adding that the amendment to the three broadcasting acts have yet to be approved by the legislature.
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