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The problem with channels a la carte is if you have two competitors, one of whom bundles content and the other of whom competes a la carte, there is a strong tendency for them to get into a ruinous price war.

Since people already do bundle, that makes getting into an a la carte variation very dangerous.

See http://www.dtc.umn.edu/~odlyzko/doc/price.war.ps for details.



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