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The videos were compiled from still images shot by cameras aboard the International Space Station. Video China's rocket prepares for takeoff Netflix's dreamy deal Is technology killing jobs? Heathrow moves forward with pod cars Stuffed bananas sure to a-peel Follow Reuters Facebook Twitter RSS YouTube Read First Boeing Dreamliner arrives in fortress Japan | 1:19am EDT Apple Prepares to Unveil iPhone 5 Oct. 4 27 Sep 2011 Nancy Grace Denies 'DWTS' Nip-Slip 27 Sep 2011 Judge asked to order more drugs for shooting suspect Loughner 27 Sep 2011 Apple expected to unveil new iPhone next week 27 Sep 2011 Discussed 109 Particles recorded moving faster than light: CERN 90 House unexpectedly defeats spending bill 80 UPDATE 1-Particles found to break speed of light Watched Rihanna's "inappropriate" outfit haults music video Tue, Sep 27 2011 Man held after 41 years on the run Tue, Sep 27 2011 Is technology killing jobs? Mon, Sep 26 2011 In switch, cable operators want to go "a la carte" Tweet Share this Email Print Related News Netflix signs pay TV deal for Dreamworks animation Mon, Sep 26 2011 Blockbuster offers streaming for Dish customers Fri, Sep 23 2011 Netflix, Discovery in streaming deal for TV shows Wed, Sep 21 2011 Netflix splits DVD and streaming services Mon, Sep 19 2011 Hulu sale at risk even as new bids are due Fri, Sep 16 2011 Analysis & Opinion Tech wrap: Blockbuster 2.0 – now streaming movies MTV lays off staff; Viacom chief tweaks outlook Related Topics Technology » Media » By Yinka Adegoke NEW YORK | Tue Sep 27, 2011 6:09pm EDT NEW YORK (Reuters) - Cable operators are privately working on a plan to force programmers to unbundle their networks and allow customers to subscribe to channels on an individual basis. The plan represents a complete reversal from cable operators' long-held opposition to what is known as "a la carte" programing. Over the last decade, the cable industry battled ferociously with regulators to protect the right to bundle programing, arguing it offered customers the best value. But executives now say the change is a necessary response to shifting dynamics such as higher carriage costs and using the Web to watch programs, as well as a weak economic recovery that has forced many consumers to cancel cable television subscriptions. Comcast Corp and Time Warner Cable, the two largest operators have lost 1.2 million video customers in the 12 months to June 30. Pay-TV distributors such as Time Warner Cable and Cablevision are searching for a business or regulatory strategy to lower escalating programing costs, which have risen between 6 and 10 percent each year during the last decade, according to industry sources. An "a la carte" menu of programing would give consumers who are not sports fans the freedom to drop high cost sports channels such as Walt Disney Co's ESPN and ESPN 2 from basic packages. At around $4 a subscriber, ESPN is the most expensive channel in the cable business, according to SNL Kagan. "We feel that some of those expensive channels should be offered a la carte so only those people who want to watch them actually pay for them," said Jerry Kent, chief executive of Suddenlink, which has 1.3 million cable customers. Rocco Commisso, chief executive of Mediacom, which has 1.2 million subscribers, sent a letter to Federal Communications Chairman Julius Genachowski earlier this month that suggested "instituting a carefully designed a la carte system, so that decisions about what video services are bought are made by consumers themselves, rather than by content owners." The specter of unbundled programing is likely to encounter fierce resistance from network owners such as Viacom Inc or Discovery Communications Inc, which are keen to maintain the economics of selling their most popular channels as a package with their smaller, nascent networks. EXPENSIVE RIGHTS The cable operators' plan is motivated in part by the high cost of sports programing rights, which have skyrocketed in recent years. ESPN recently singed a $15 billion, 8-year TV rights deal with the National Football League, a 73 percent premium over their previous agreement. Cable operators, fearful of having to pay for the increase or pass it on to customers, harshly criticized the deal. Cable and satellite companies have also had to start paying for the right to carry Disney's ABC, CBS Corp's CBS, Comcast Corp's NBC Universal and News Corp's Fox. Those free-to-air broadcast networks traditionally had been carried by cable operators at little, if any, expense. Federal rules require cable distributors to carry local broadcast stations, which they argue gives broadcasters an unfair advantage in contract talks. The so-called retransmission fee debate has already led to high profile blackouts of local TV stations in the last few years after contract negotiations between pay-TV companies and broadcasters broke down over payment terms. "There is a growing recognition that the current model is broken," said Craig Moffett, a long-time cable analyst at Bernstein Research. Moffett warned, however, that allowing customers to choose any station they wanted in any package would be economically unfeasible for both the consumer and the cable company. "It could be a la carte, but not as people imagine it now," he said referring to smaller packs of programing more akin to what Time Warner Cable Inc has tried. Last November, Time Warner Cable launched a three-city trial of a low cost TV Essentials pack with fewer channels. It now plans to expand that offer to other cities. Following Mediacom's lead, rivals Time Warner Cable and satellite company DirecTV Group joined forces this month to reach out to Genachowski about retransmission fees, with the aim of unbundling broadcast channels from cable channels in carriage negotiations. They are keen to find long-term solutions ahead of what they referred to as the "retrans season" starting next month, when many agreements come up for renewal. "We're in an environment where programing costs are rising at well above inflation and well above what I think consumers are willing to pay," said DirecTV CEO Mike White at a recent investor conference. "I think content costs are a challenge for the entire industry." (Reporting by Yinka Adegoke; editing by Peter Lauria and Andre Grenon) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) emmabrad wrote: If viewers want “a la carte” TV over the internet, there’s no reason to go out and buy a new TV, you can get the broadcasts online using software from services like the TVDevo website . This type of solution is cheaper and easier than going out and buying an Internet TV set. Sep 27, 2011 11:37pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) 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