Where is my ala carte cable TV?

Over the weekend, I started looking at how realistic would be cutting my IPTV provider and replacing it with over-the-air broadcasts and Internet steaming from services like Hulu Plus and Netflix. Most anyone else would be looking to ditch a cable provider like Comcast, Cox or Time Warner. I have AT&T U-verse -- since February 2008. My U-verse bill for Internet and TV was $140 last month, and that's simply more than I can afford to spend. I'm not fully employed.

The problem, I realize, is that U-verse (or Cox, the other option) offers too much of what I don't want and not enough of what I do. I'd rather pay something like 80 bucks a month, even 100, for Internet and handful of channels and streaming services that my family would regularly watch. Perhaps cable providers don't see the profit opportunity in such an approach, or maybe it would be logistically too difficult to offer such choice or to mange its billing.

Here in San Diego, U-verse offers one Spanish and six English packages ranging from $19/month (local channels only) to $117 (up to 370 channels, including local). AT&T could argue that it can't logistically offer ala carte bundles, but I wouldn't believe it. The service runs the highbrow Microsoft MediaRoom software and offers ala carte programming right now. The first: Free or fee video-on-demand services, which cable companies offer, too. The second: Sports programming. Third: Select additional channels, such as Asia TV, Channel One Russia, STAR India PLUS and TV Japan.

I would argue that AT&T has the capability to offer ala carte bundles and, having used FiOS TV on the East Coast, Verizon as well. But is the organizational will there to be so bold? It should be with Comcast, NBC's new owner. Streaming content presents real competitive challenges to cable providers and major networks -- and on their broadband pipes. If I do cut the chord, either AT&T or Cox likely would provide Internet service, for example. AT&T could keep me as a TV customer by letting me choose just the channels -- heck, even the TV shows -- I want to watch for a simple flat rate. Smarter: Integrating services like Amazon Video on Demand or Hulu Plus. Why compete when cable or IPTV can embrace and extend? Be part of the future, rather than hold customers to the past.

I'd argue there's even a market for offering people the option of subscribing to individual TV shows. Choose 10 shows that can be watched live and streamed anytime, anywhere and on anything -- no DVR required. Cable providers could even add a couple commercials to streamed programs, like Hulu and networks do. Better: Work with networks to tap into their infrastructure for streaming but with full and past season access to subscribed shows.

Individual show subscription already is an option offered at iTunes. Why should Apple cash in on cable providers' pipes? If some consumers are willing to buy ahead, say, for a season pass for "Fringe," there's a market for TV service providers, too.

The question: Is there an advertising advantage here? Seems to me the answer is a resounding "Yes!" Let's say that AT&T or Verizon get 10 million subscriptions to AMC -- that's a captive audience above and beyond the typical cable viewership. What if the cable network and TV service provider offer something like an AMC Plus to subscribers, with regular and extra programming -- and streaming anytime, anywhere and on anything. Advertising rates would be higher, and even shared between the network and TV provider. Audience -- people choosing to get that network over others -- would justify the high ad rates, the assumption being these subscribers watch more of the programming; it's an audience quality metric rather than the typical quantity.

My question for Betanews readers: Would you prefer ala carte cable to the options you have now, and what price would be right for you? Please answer in comments. By the way, if there is a truly ala carte service that you know about (and I don't), please share about that, too.

Meanwhile, I'm researching  the cost of giving up U-verse for OTA and online streaming. I'll post about that in a few days.