Concept

A la carte pay television

A la carte pay television (from the French à la carte, "from the menu"), also referred to as pick-and-pay, is a pricing model for pay television services in which customers subscribe to individual television channels. For subscription distribution services, a la carte pricing contrasts with the prevailing model of bundling, in which channels are grouped into packages that are offered on an all-or-nothing basis. The term has subsequently been applied to cord cutting—the practice of relying on television services that are streamed over the internet, and to the bundling of various video on demand subscription services, each chosen individually by the consumer, and made accessible through one centralized billing and over the top viewing mechanism. A la carte pricing has been an often-requested but seldom-delivered option for cable and satellite distribution services. In the U.S., proponents have argued that the model would deliver lower prices, while opponents maintain that bundling offers more customer value and program diversity. In Canada, a la carte service has been required by law since December 2016. The legislation dates back to at least 2012 when the Canadian Radio-television and Telecommunications Commission (CRTC) ruled that consumers should be able to subscribe to individual channels, but the fewer channels purchased, the higher the cost for each one. No timeline was set. In October 2013, Industry Minister James Moore said that Canadians "shouldn't have to pay for bundled television channels they don't watch" and indicated that the country's Conservative government would make it easier for subscribers to purchase channels individually. On December 1, 2016, as per policy implemented by the CRTC on March 19, 2015, all television providers in Canada were required to offer an a la carte scheme. Channels were typically priced between 4and4 and 7, making bundled packages the better deal for all but the most frugal subscribers. Consumers were incredulous about the offerings, but analysts were not surprised, arguing that the industry would be expected to protect its bottom line.

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