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Television

Submission + - Lawsuit filed over bundling of channels

smooth wombat writes: As if in response to FCC Chairman Kevin Martin's recent comments, a lawsuit has been filed in the federal district court in Los Angeles against cable and satellite tv providers.The lawsuit challenges industry-wide agreements and practices that effectively mandate that consumers must purchase prepackaged tiers of bundled cable channels and cannot purchase channels or programming on an "a la carte" basis. The lawsuit alleges that the agreements and practices are unlawful restraints of trade in violation of the federal antitrust laws.

The cable TV industry has argued that such an a la carte system would lead to higher prices, less programming diversity and fewer channels in part because advertising revenue would fall. Such a system also would require more customer service representatives and raise the costs of billing and marketing, the industry has said.
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Lawsuit filed over bundling of channels

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