Will bills rise with channel choice? Canada to find out

Associated Press

LOS ANGELES

Can you save money if you pay only for the TV channels you watch?

The question will be put to a real-world test in Canada starting Tuesday.

TV executives in the U.S. and Canada long have argued that the best value for your money comes through packages of hundreds of channels. You might not want every football game or Korean drama, but you usually can find something to watch when you plop down on the couch. When everyone buys a big package of channels, the cost of each is spread thin. Your monthly cable bill reflects that lower per-channel cost, even if you watch just a few channels.

And though you might gripe about paying for all the channels you never watch, the price of each channel could rise a lot if fewer people chose to pay for each one individually. The industry also has resisted offering full choice because overall subscription and advertising revenue could decline. Some channels might not survive at all.

The first step in Canada’s government-mandated plan is partial. At first, pay-TV providers only have to offer slimmed-down basic package for $25, with theme packs such as sports or entertainment channels as add-ons. Some U.S. cable and satellite companies already are starting to offer slimmer packages, such as Sling TV from Dish for $20 a month. Full channel choice, or a la carte, is due in Canada by the end of the year.