Is Pre-Paid Cable TV In The Works?

According to Lightreading, cable companies are kicking around the idea of pre-paid cable services:

“The notion is to sell a simple and inexpensive set-top box at outlets like Walmart, Target and Walgreens and pair them with pre-paid cards (or maybe codes of some sort) that would load services by the hour, week or month. Or maybe it could be taken a step further and let consumers also buy some services individually – for example, an HBO card that’s good for a month. “

“The rumor is that at least one major U.S. MSO is currently exploring a pre-paid model, and, according to a source, would involve a low-cost, two-way box that has yet to be developed. Another source said Comcast Corp. (Nasdaq: CMCSA, CMCSK) looked into this idea years ago, but didn’t follow through with it. It’s not known which major operator is the one that’s looking at it in this go-round.”

As Jeff Baumgartner, who wrote the piece for Lightreading, notes, this could pave the way a la carte programming. It could also create a new genre of video consumers, part-time cord-cutters. Baumgartner points out that this allows viewers to easily buy a temporary cable subscription. For example, sports is the achilles heel of cord-cutters. But with pre-paid cable, you would be able to purchase TV programming to catch a season of your favorite sport. And once the championship trophy is raised, you could go back to your cord-cutting ways.

Now if cable companies go the pre-paid route, it could bring generate revenue and possibly even reel in more regular long-term subcribers. But it could also backfire. The pre-paid model could spur regular subscribers to dump high monthly cable fees and become part-time cord-cutters.

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