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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Cable companies, networks mull smaller TV bundles Reuters - Friday, July 9 Send IM Story Print By Yinka Adegoke SUN VALLEY, Idaho - Cable operators and entertainment companies are talking about selling cheaper cable TV packages with fewer channels to attract and keep customers trying to save money in a weak economy. The talks, which are still at an early stage, also could give cable companies an advantage in competing with cheaper Web TV services offered by companies like Google, Netflix and Apple. Basic cable bills have ballooned in the United States over the years as distributors add more channels, usually negotiated with program makers. Basic cable packages typically have more than 60 channels and are priced close to $80 in some regions. But with a tough U.S. economy, weak job market and competition for disposable income from telecommunications services like Internet access and mobile phones, cable distributors and program makers realize consumers may look elsewhere for entertainment as a way to save money. "It would be a good thing if we could all figure out a way to have one or more smaller packages that would be attractive to people who can't afford bigger ones, especially if we could do it in a way that the entertainment companies are still able to finance the product," said Glenn Britt, chief executive of Time Warner Cable, the second-largest U.S. cable company. Britt was speaking on the sidelines of the annual media conference held each year in the mountain resort getaway of Sun Valley, Idaho. Its attendees include some of the top cable and satellite TV distributors such as Comcast Corp and DirecTV, as well as programmers like Viacom, Discovery Communications and Scripps Networks. With basic cable in some cities closing in on $80 a month, some Wall Street analysts have warned the cable industry could harm itself by continuing to raise prices well ahead of the rate of inflation. "I think this is a real concern, but it is also a negotiating stance with programmers to see if they can reduce affiliate fees overall," said Collins Stewart analyst Thomas Eagan. The industry appears to have listened, but is in no rush to overhaul a revenue model that generates tens of billions of dollars a year. "Talks are happening at some level, but not too seriously," said Britt. One senior media executive at the event who spoke on condition of anonymity suggested there could be a gap in the market for video programing packages streamed or delivered via cable for about $25 to $40 a month. "I don't think these early services are a substitute yet, but the cable guys have to always be mindful of tomorrow." Recommend Send IM Story Print Related Articles PayPal, Tesla founder goes public on divorce AFP - 17 minutes ago Campaign launched against Comcast-NBC Universal deal AFP - 2 hours 14 minutes ago US-TECH Summary Reuters - Friday, July 9 Cable companies, networks mull smaller TV bundles Reuters - Friday, July 9 Pakistan busts gang of website hackers: official AFP - Friday, July 9 News Search Top Stories Airbus submits bid for US military mega-project Russia spy suspects plead guilty, opening way to swap IMF presses US to cut debt ECB key rate remains same amid bank concerns ECB keeps main interest rate steady: spokesman More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Germany's 'Octopus oracle' keeps perfect record Hollywood star Lindsay Lohan jailed for 90 days German industry hit by sudden fall in orders IMF's global growth forecast amid financial shocks Paris Hilton arrested after Brazil World Cup match: reports More Most Viewed » Reclusive top mathematician turns down prize, again Germany's 'Octopus oracle' keeps perfect record Aussie men shoot each other in buttocks 'to see if it hurts' Amputee cat gets bionic legs Fans gather for Michael Jackson death anniversary More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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