Martin Slams Cable on Pricing, Bundling
FCC chairman backs Consumers Union complaints to Congress about cable industry
By John Eggerton -- Broadcasting & Cable, 10/30/2008 5:33:00 AM
FCC Chairman Kevin Martin took the opportunity of a letter to Congress from Consumers Union to hammer the cable industry over rates and put in yet another plug for a la carte, at least obliquely, and using the tanking economy to drive home the point.
In a statement commenting on a letter from the consumer group to the Senate Commerce Committee about cable systems moving channels out of their analog packages and onto the digital tier, Martin said they had it right.
"We agree with Consumers Union. Over the last decade average cable rates have more than doubled," he said in a statement Wednesday afternoon. "And now cable companies are charging consumers more but consumers are receiving less.
"We have also received complaints that cable companies are moving channels to a digital-only tier and charging consumers the same monthly rate for a reduced number of channels. If consumers wish to continue watching the same channels that they were before, they must now buy a more expensive package or rent more expensive equipment. This is an unfortunate trend for families facing increasingly difficult economic times."
The National Cable & Telecommunications Association saw it differently. Calling the group "off base," NCTA said: "CU completely misses the real reason that more consumers are enjoying digital cable – because it provides a valuable and diverse range of programming, high-definition video and interactive services that the entire family can enjoy. During today’s tough economic climate, the significant price savings offered by cable’s triple play bundle of video, broadband and phone service is even more valuable to consumers."
NCTA said it would have more to say on the issue.
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Neither the FCC or any other government agency has any constitutional interest in regulating cable television. The Idea that the FCC has authority over broadcast television is the premise that the airwaves are a public resource. This is not true of Cable or Direct TV services they are a private resource and should be beyond the governments reach either in terms of content or the packaging and pricing of their services. If you don't like cable cancel it. Don't whine for big daddy government to cater to your silly socialist little self.
Derrick M - 11/11/2008 11:09:00 PM EST -
I would have to agree with the FCC on their ruling. We have noticed that the lower tiers are being populated more and more with valueless programming and home-shopping style packages. Comcast has become the master of this switch. We have resisted this "force play" by looking for other sources of entertainment.
I believe that IPTV riding on the backbone of the broadband service providers will become the salvation of the television viewer. They, the viewer, will be able to watch their local programming in the basic tier and then choose their own style of shows in an a-la-carte fashion with VOD and PPV offered via IPTV solutions.
David Olson - 10/31/2008 7:41:00 PM EDT
FCC: Cable Inquiry Does Not Violate Law
11/12/2008
