FCC Chairman Martin appears to have embraced the idea of a la carte pricing, be it for satellite radio or satellite TV.
So said Banc of America analyst Jonathan Jacoby in a note to clients this week.
Remarking on Martin’s comments to attendees during CES, Jacoby said though the bulk of the chairman’s remarks concerned the DTV transition, net neutrality and increasing competition across spectrum uses, “Our view is that Martin believes that the market is the best system to negotiate pricing, content, etc., rather than through government intervention.”
While Martin was clear that no decision on the satellite merger has been made, and that it is still being reviewed, he commended the merger hopefuls on their al la carte pricing proposal. “Martin likes the idea that under the proposal, consumers can take control of content and pricing.”
However Jacoby cautioned that the FCC has yet to dig into the proposal, and BOA believes if it is approved, strict conditions would be imposed.
“Even if the deal is approved, we don’t see much fundamental upside to the combined entity as long-term sub economics continue to deteriorate,” stated Jacoby.