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Rutledge: Over-The-Top Could Help Moderate Rising Content Costs

Over-the-top programming, the source of many a content distributor's nightmares, could help moderate rising programming costs in the future, Cablevision Systems chief operating officer Tom Rutledge told an audience at an industry conference Thursday.

"The rich [programming] package we provide is extremely valuable to customers and there is pricing power in that package," Rutledge said at the Bank of America Merrill Lynch Media , Communications and Entertainment conference in Beverly Hills, Calif. "On the other hand, you have people experimenting with over-the-top television, which if successful would tend to make that package less stable, which will change the balance of costs. I'm not sure how that goes."

Asked about a la carte programming, Rutledge said he would offer every network ala carte if he could, but the programmers won't allow it.

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