Cable TV Costs Rise, But Consumers Gain Leverage
Telecom giants Comcast and Time Warner's proposed deal to increase their market share is being challenged by consumers, media watchdog groups, and even Verizon Communications. A loophole in federal law, which prevents Comcast from providing its sports network to satellite TV subscribers, is at the heart of the issue. Close to 12,000 people have complained to the Federal Communications Commission about cable's rising prices and anti-competitive practices, urging it to reject the proposed deal.
Key Takeaways:
- The Federal Communications Commission is considering a proposed deal between Comcast and Time Warner, the nation's top two cable companies, which would further consolidate their market share.
- Close to 12,000 people have complained to the FCC about cable's rising prices and anti-competitive practices, citing a loophole in federal law that prevents Comcast from providing its sports network to satellite TV subscribers.
- Verizon Communications, a major telecom provider, is advocating for its fiber-optic network to have access to Comcast's sports network, which is locked up by a "must-have" local programming loophole.
- Comcast officials argue that its sports network is similar to DirecTV's exclusive NFL Sunday Ticket, but this comparison has been disputed by local sports fans.
- The FCC may use its leverage to close the SportsNet loophole, which could lead to increased competition in the cable industry.
Statistics:
- Close to 12,000 people have complained to the FCC about cable's rising prices and anti-competitive practices.
- Consumers served by two cable companies enjoy prices averaging about 15 percent less than in noncompetitive markets.
- Only a tiny fraction of consumers have a choice between two cable companies, with the majority being served by a single provider.
Sources:
- Free Press, a media watchdog group
- Federal Communications Commission
- The Philadelphia Inquirer
- Verizon Communications
- DirecTV
- RCN Telecom Services
- Comcast
- Time Warner