Hike Threatens Small Systems' PPV


Up to 250 small cable systems might have to cease offering pay-per-view
service due to what they called a "killer rate hike" by PPV provider In Demand

In January, executives received letters advising them that starting May 1,
the programming provider would eschew its per-use licensing fee in favor of a
flat charge of $500 per month, per headend.

Attorney Chris Cinnamon, who advises the American Cable Association, said 150
operators have told the small-system trade group they will stop offering PPV
product if In Demand holds firm.

Another 100 small systems are still analyzing the financial and competitive
fallout from canceling the service.

A dearth of PPV offerings could put small operators at a further disadvantage
against direct-broadcast satellite providers.