Get ready for the great cable unbundling

The cable industry is pulling an about-face on the issue of a la carte programming, due to increasingly expensive content rights and a weakening economy making bundles of network programming less affordable for the average consumer.

That’s the word from Reuters, which reports that cable executives are negotiating with content providers and seeking regulatory relief in an effort to create smaller and more affordable bundles of programming. Cable companies have historically fought against the idea of a la carte, arguing that allowing customers to choose channels on an individual basis would tear apart the value of the bundle. Since typical cable viewers only watch a handful of networks each, such a choice would mean that many niche networks with lower ratings wouldn't survive if viewers didn't choose to pay for them. But cable companies have become stuck between a rock and a hard place: On one hand, media companies are demanding ever-higher carriage fees for their programming; on the other, consumers are being squeezed by a weak economy that threatens to make cable service unaffordable.