Canada will serve as model in U.S. cable battle, says Cogeco CEO Audet

TORONTO – The head of Cogeco Cable says Canada will serve as a model to the U.S. cable industry as more viewers demand freedom of choice in their cable packages.

Chief executive Louis Audet expects U.S. cable operators will choose to follow a similar trajectory as dissatisfaction rises over the forced bundling of TV channels, and how much it costs subscribers.

“I think we will set the stage, so to speak, because we are further ahead in discussing how things should be done,” he said at a media event held by the company on Tuesday.

“The U.S. will have to follow the model that we will adopt in Canada — I think there’s no other choice. Eventually there will be a customer revolt.”

Much of subscriber discontent revolves around the rising price of U.S. cable packages, and how much viewers are forking out for channels they don’t watch.

Last month, Ottawa outlined plans that would mandate Canadian broadcasters to unbundle some of their TV offerings, a notable step towards forcing cable and satellite TV providers to offer “pick-and-pay” services.

The future is especially important for Cogeco Cable (TSA:CCA) because it has a stake in the game. Last year, the company bought the U.S. Atlantic Broadband cable company for US$1.36 billion.

Atlantic Broadband operates primarily in Florida, Maryland and Delaware, South Carolina and Central Pennsylvania and is the 12th largest American cable company, offering Internet and home phone service.