New Topic Paper from The Diffusion Group Finds NCTA's Position a Last-Ditch Effort to Protect an Obsolete Business Model
(PRWEB) July 21, 2004 -- As the FCC and Congress begin their deliberation over the future of a la carte cable television offerings, a new paper from the industry think-tank, 'The Diffusion Group,' claims that the National Cable & Telecommunications Association's position on a la carte is "…ripe with politically-inspired rhetoric intended to further protect a business model that is becoming increasingly obsolete." In addition, "No one is arguing that the cable television industry hasn't helped broaden consumer viewing choices, or that the long-standing strategy of tiering or bundling channels hasn't to some extent served to create content diversity," says Michael Greeson, president of The Diffusion Group and author of the paper. However, the long-standing argument that more channels equal greater diversity is without merit. At some point this logic becomes utterly foolish."
The problem with the NCTA is its "lack of perspective, its inability to see beyond self-interest," Greeson continues. "To add insult to injury, the NCTA's long-standing political ventriloquism no longer resonates with either lawmakers or the public. In the case of a la carte program offerings, the NCTA should take the high-road and champion the move, but manage the process in such a way that it will serve its true long-term objectives. For example, the NCTA could limit analog cable subscribers to only tiered offerings, whereas digital cable subscribers would have the freedom to select the specific channels or packages of greatest interest. If properly articulated, this kind of model has the power to jump-start digital cable upgrades and turn the a la carte movement on its head."
While the NCTA has used tiered programming to help subsidize less popular niche programming, The Diffusion Group believes it is time for these publicly-funded subsidies to stop. "The NCTA is not the National Endowment for the Arts – they are not tasked with the responsibility to support artistic creativity and the aesthetic values of our culture," continues Greeson. "If they believe a specific program is so socially redeeming that it deserves subsidies, the NCTA can provide those subsidies without forcing consumers to accept pre-packaged offerings." The paper is available for free download on the company's website, www.tdgresearch.com.
About The Diffusion Group –
The Diffusion Group is a "think tank" of consumer technology analysts charged with providing timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at www.tdgresearch.com.
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