The NAB has come out with another press release that slams the “a la carte” pricing plan, the same plan that the FCC Chairman previously praised. The NAB wants the public to believe what anyone can see as common business practice is in fact a “sham.”
In their pricing chart the NAB cites that even though the smaller channel packages cost less, the price per channel increases. We ask, what is your point? This is a normal, buying in bulk discount, business practice that takes place on a daily basis around the world. Should someone be breathing down the backs of the makers of Charmin toilet paper because they charge more per roll when you buy a 4 pack instead of a family super size 24 pack?
“Only in a monopolist’s world are 50-channel minimums, higher prices, interoperability restrictions and a required hardware upgrade considered a consumer benefit. This analysis demonstrates that XM and Sirius are engaged in nothing more than a desperate PR stunt at the expense of consumers.”
Who is engaging in a desperate PR stunt? Cable broadcasting offers the same kind of basic tiered pricing that you are criticizing, the NAB’s own fancy chart clearly illustrates that there is in fact lower pricing options, interoperable receivers are already on the integration plan, and anyone who has had to purchase a new TV knows that hardware upgrades in this day and age are just part of the game.
I have said it before and I will say it again, I am still waiting for an honest sensible reason as to why these two companies should not merge. My thoughts are constantly reassured by the fact that the NAB, a company with more to lose than anyone, is still not able to make a strong case against them.
[NAB Press Release]