Cable

Two decades ago, something unusual happened.

Consumers were irate about their cable bills, which were increasing at nearly three times the rate of inflation. And Congress actually did something — adopting in overwhelmingly bipartisan fashion the 1992 Cable Act. The law resulted in lower cable bills, saving consumers $3 billion in just over a year’s time.

But this was only a brief respite. Washington soon caught a deregulatory fever, and less than three years after a super-majority of Congress voted to rein in monopoly cable prices, an even larger super-majority voted to let the cable industry return to its price-gouging ways. And return to them it did.

Since 1996, cable bills have continued to increase at nearly three times the rate of inflation. And this trend is only getting worse. Since the 2008 recession, the average annual rate of inflation has been 1.4 percent, but the price of expanded basic cable service has increased by an annual average of 5 percent. And these figures don’t include mandatory equipment-rental costs, which continue to skyrocket.

While no one is willing to take credit for these out-of-control price increases, there’s plenty of blame to go around. Cable channel owners like Viacom, Disney and News Corp., and cable providers like Comcast and Time Warner Cable, are the two factions of a comfortable cabal, one that earns monopoly-level profits from consumers who are deprived of any real choice in the pay-TV market.

Programmers like Viacom force cable companies like Comcast to buy channels in bundles — meaning providers can’t have popular channels like MTV without also carrying little-seen channels like VH1 Soul. Cable companies in turn force consumers to pay for hundreds of channels they’ll never watch.

To make matters worse, cable companies are also the largest providers of broadband service, which a growing number of consumers are using to cut the pay-TV cord in favor of online video programming. To protect their legacy pay-TV profits, cable providers are raising the fees they charge for broadband, and strong-arming the programmers to agree to withhold their content from online video companies like Netflix.

Change may be on the horizon, thanks to the Television Consumer Freedom Act. Introduced by Sen. John McCain and co-sponsored by Sen. Richard Blumenthal, this bipartisan bill could shake up the cable industry and finally give consumers a real measure of control.

The bill ensures consumers are offered an a la carte option alongside more flexible bundled-channel packages, allowing us to pay for only the channels we actually want to watch. This would save consumers money in the short run — and in the long run would help create a more competitive television market both online and via the traditional cable and satellite delivery platforms.

Blog Posts

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Press Releases

  • AT&T-DIRECTV Merger Still Doesn't Serve the Public Interest

    July 21, 2015
    WASHINGTON — On Tuesday, the Wall Street Journal reported that the FCC is poised to grant AT&T's proposed acquisition of DIRECTV. FCC Chairman Tom Wheeler subsequently issued a statement confirming that he would circulate for a full Commission vote an order proposing approval of the deal.
  • Planned Charter Mega-Merger Does Nothing to Benefit Customers or Boost Competition

    May 26, 2015
    WASHINGTON — Charter Communications on Tuesday announced plans to acquire Time Warner Cable in a deal valued at $56.7 billion. Charter also confirmed that it would acquire Bright House Networks, a smaller cable company, for $10.4 billion.
  • Comcast-Time Warner Cable: The Deal Is Dead

    April 24, 2015
    WASHINGTON -- Comcast abandoned its proposed merger with Time Warner Cable on Friday morning. The move followed media reports of considerable skepticism about the benefits of the merger by staff at the Department of Justice and the Federal Communications Commission, the two agencies charged with reviewing the deal.
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Resources

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News from Around the Web

  • The FCC Is About to Approve the AT&T-DIRECTV Deal

    Washington Post
    July 24, 2015

    Federal regulators are preparing to approve AT&T's $49 billion bid to purchase DirecTV, a mega deal that joins the country's largest satellite TV firm with the second-biggest provider of cellular service.

  • FCC Chairman Backs AT&T’s Merger with DIRECTV

    MediaPost
    July 22, 2015

    AT&T's $49 billion merger with DIRECTV appears to be headed for regulatory approval, Federal Communications Commission Chairman Tom Wheeler indicated on Tuesday.

  • FCC Set to Approve AT&T’s Purchase of DIRECTV

    Los Angeles Times
    July 22, 2015

    The Federal Communications Commission is poised to approve AT&T's purchase of satellite service DIRECTV, a $49-billion deal that would transform the phone giant into the nation's largest pay-television operator.

Learn More

  • Broadband

    Access to high-speed Internet service — also known as broadband — is a basic public necessity, just like water or electricity.

    Yet despite its importance, broadband access in the United States is far from universal. Millions of Americans still stand on the wrong side of the "digital divide," unable to tap into the political, economic and social resources of the Internet.

  • Cybersecurity

    Our right to private communications is a cornerstone of American democracy. But with heightened awareness in the aftermath of the 9/11 terrorist attacks, technological advances have continued allowing the government to expand its reach into our private lives via electronic surveillance and data-mining programs. New laws and policies introduced in the last decade have eroded our civil liberties online.

    Congress has a poor track record when it comes to cybersecurity legislation. The bills introduced so far give the government way too much power to intrude on our privacy online.

  • Declaration of Internet Freedom

    Tired of fighting bad bills like SOPA, PIPA and CISPA? Want to stand up against those who are trying to control what we do and say online? It's time for something different.

    A group of more than 1,500 organizations, academics, startup founders and tech innovators has come together to sign a Declaration of Internet Freedom, a set of five principles that put forward a positive vision of the open Internet. Click here to add your name.

People + Policy

= Positive Change for the Public Good

people + policy = Positive Change for the Public Good