Thursday, September 20, 2007

Antitrust Lawyer Cries "No Tiers!"

A class action antitrust lawsuit filed today claims that the pay-cable industry is a cartel that maintains its profits by forcing customers to buy channels in prepackaged tiers, reports the AP.

The suit names numerous MSO's (cable companies), satellite companies, and cable and broadcast networks, and seeks to require that cable channels be offered a la carte. This has also long been a goal of conservative activists, who object to sex, nudity, violence, and language on some channels. There's no indication that those activists are involved in the suit, however.

The cable industry opposes a la carte, saying it would lead to higher prices, fewer channels, and higher billing and customer service costs.

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