Skip to main content

Exposing the Reasons for Costly U.S. Pay-TV

Associated Press reports that cable television service rates keep going up while prices for other communications services are going down, says the U.S. chief communications regulator, and he blames local governments for blocking competition.

The Federal Communications Commission (FCC) is scheduled to vote on whether to make it easier for competitors to obtain cable franchises. FCC Chairman Kevin Martin, in speeches over the past few weeks, has said local franchise authorities at times "obstruct and in some cases completely derail" new attempts to bring video competition to an area. At stake is the battle for America's television watchers.

And people in the United States watch a lot of television. The FCC reports that the average U.S. household tuned in for eight hours and 11 minutes each day in the 2004 and 2005 fall television seasons. The latest statistics indicate there are 109.6 million television households and 94.2 million of them subscribe to a pay television service such as cable or satellite.

Cable accounts for 69.4 percent while direct broadcast satellite companies such as DirecTV and Dish Network are responsible for 27.7 percent.

Martin is using public resentment over rising cable prices to sell his proposal. He is expected to release a report that says cable rates have risen 93 percent from 1995 to 2005. Martin has also been quoting numbers compiled by the investment research firm Sanford C. Bernstein & Co. that predict a 5.4 percent increase in prices for cable subscribers in 2007 in a dozen markets, including Seattle, San Francisco and Philadelphia.

Popular posts from this blog

How AI Transforms Financial Decision-Making

Artificial intelligence (AI) has emerged as a transformational force, reshaping business processes and unlocking new possibilities for efficiency and innovation in corporate finance. The latest Gartner survey on AI usage in finance provides evidence of this emerging trend, offering valuable insights into the future growth trajectory of AI in finance. The Gartner survey reveals a significant milestone. As of 2024, 58 percent of finance functions actively use AI technology -- that's a substantial increase from previous years. Artificial Intelligence Market Development Perhaps even more telling is the projection that by 2026 more than 80 percent of finance functions are expected to be leveraging AI solutions. The survey sheds light on the use cases of AI in finance: AI is being deployed to enhance forecasting accuracy and provide deeper insights into financial trends. Automation of routine tasks and improved accuracy in financial reporting are key benefits observed. AI algorithms are