Saturday, July 14, 2012

"Bundling" Occurs 2 Ways, at Wholesale and Retail Levels

Lots of consumers doubtlessly would prefer to buy their video content one program at a time, or one "channel" or "network" at a time. It isn't so clear, yet, that either video distributors or programming networks would prefer to sell that way.

In fact, traditionally, programming contracts have carried stipulations about how content could be packaged, and those terms generally prohibit a la carte sales of programs.

Programming networks, in fact, prefer to bundle networks when they sell to distributors, as it allows them to "force" a distributor to buy a new network, or a network with little viewership, because doing so is a requirement for getting rights to air a popular network.

Currently involved in a major contract dispute with Viacom, DirecTV is trying to remind its customers that it, DirecTV, disputes proposed Viacom pricing and bundling because prices would rise.

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