A leading cable executive issued a scathing assessment of the a la carte programming model. Appearing in Beverly Hills at the media event TheGrill, FX Networks CEO John Landgraf said a la carte poses a threat to the Hollywood creative community, the cable industry and consumers, TheWrap.com reports.
Said Landgraf: “I think it’s a risk to the whole ecosystem.” The executive added that half the jobs in Hollywood would disappear if the current model gave way.
“If that happened, you’d see the greatest recession in the history of Hollywood," he said.
"While he acknowledged ‘a certain amount of genuine consumer irritation’ over the current cable model and its resultant prices, he insisted that it’s still a relatively cheap form of entertainment compared to other forms of entertainment and that the current way of doing business is essential to a financially viable entertainment industry," the story reports.
Added Landgraf: “There are a lot of interested parties that would like to see the system fall apart (but) it’s just a really efficient economic model.”
And: “If you look at the town we sit in and all of the agencies and all of the people in these agencies … they’re dependent on this model. They’re absolutely dependent on this model."
From a consumer standpoint, Landgraf said, the loss of revenue from pay-TV subscriptions would hit the funding of programming, leading to “more homes paying higher prices for fewer channels.”
Here’s a taste of what Landgraf had to say: