Where We Live: Cable TV
Cable TV subscribers pays 3 times as much for cable now as they did in 2001
The average cable TV subscriber pays nearly 3 times as much for cable now as they did in 2001. And the costs are going up all the time.
The cable industry says that’s because of the high cost of the programming it buys, and its need to maintain an infrastructure to bring you those 500 channels.
In some ways, you’d think this would be a tough time for cable. New ways of getting the shows and movies you used to get from your set-top box are popping up every day...Netflix, hulu, roku, boxee. And so-called “rogue” internet sites are providing programming to many for free.
But a new study shows that Cable Networks are doing just fine - negotiating big license fees from providers. Some of those providers - like Comcast - are also in the programming business so they’re making money that way.
And there’s that question of “monopoly.” If you want cable service in your town, you really only have the one choice - don’t wanna pay the bill? Then cut the cord.
Today - we’ll look at the ins and outs of the cable industry.
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Cable vs Broadcast TV
Quick coment. No one mentioned broadcast TV as an alternate to cable. My experience with digital broadcast TV in CT is great. All the major networks are available, ABC, NBC, CBS, PBS, FOX, ION, the pictures are in HD and the cost is free. In addition, several of the stations broadcast multiple sub-channels. Unless you have to have the cable line up this is a great alternative.
Listener Email from Dave
The guest says consumers vote with their wallet to keep the big packages, but there is NO CHOICE of a la carte to vote with?!
A la carte would presumably promote real competition between networks for price and quality.
Can your guests otherwise justify why a la carte would have to be almost as expensive as the packages?
In the digital age with Moore's law, simple and limited content should be getting cheaper every day, not more expensive.
Listener Email from Rich
Thanks for doing the show on cable providers. I live in CT but my provider is Charter, not Comcast. Charter is as horrible to deal with in my experience as I have heard Comcast is from other's stories. It's unfortunate that your guest is unwilling or unable to speak honestly about the total lack of innovation in the cable programming model, due to there being no competition in the industry. Despite your guest's protestations & apologies & excuses to the contrary, there is no competition on price and the customer service is abysmal – the cable companies act like they have nothing but disdain for their customers – why else would the fees be raised incrementally literally from month to month with no notice to the customers, only to be lowered if one studies the bill each month and compares it to prior months? Why else would the customer service people at the cable companies be able to lower the fees charged if pushed hard enough, or if you switch to a different customer service rep? The games they play with their billing methods and their so-called discounts are blatantly dishonest and misleading, and the customer service people on the phone will acknowledge that when asked.
The whining of the cable industry about their inability to provide fairly priced a la carte programming is based solely in their unwillingness to be truly innovative. If there was actual competition this industry would look very different. Imagine if Steve Jobs was in this business? Your guest would be working for the telephone company instead, which has the same monopolistic ho-hum attitude towards its customers. They prefer to pay large executive salaries, cut back on training for the infrastructure service people and pay dividends to their shareholders. The millions your guest states was invested in infrastructure is measly compared to the executive salaries & bonuses and dividends given to shareholders who only want more money & don't care about the poor level of service given to their customers.
Listener Email from Elaine
No one has mentioned that the State of CT places a lot of taxes on cable services. I have never had cable service (and they remind me that I'm the only person in the neighborhood with out it!), but one reason I never got it was because of the variable cost and the single provider. I'm glad there are more choice these days. I use an antenna and get lots of channels. Plus, has anyone thought of how much TIME one must have to sit around using the cable to fullest advantage? Thanks for this program
Listener Email from Pua
I want to remind everyone that Television/Video is vital for information, not just entertainment.
1. Public-Educational-Governmental Access programming has been the unique offering of cable television (now also available partially on AT&T's video service). It is the source of the most local programming. Where town-specific programming is available, it is the only source for detailed information on why a new fire house should cost $X million, why a referendum vote on a school budget is being held.
2. The League of Women Voters of Connecticut believes that community access television channels must be adequately protected, promoted, and funded, regardless of the provider of TV/video services to Connecticut residents. Government should provide opportunities for citizen participation in decisions regarding community access, or PEG, TV. Connecticut has made sure these channels are protected & funded. I hope your guest recognizes the value of these channels--not available on satellite TV-- to subscribers.
3. The CT chapter of the Alliance of Community Media noticed a recent suggestion by NECTA to eliminate funding for PEG programming, because public access programming is being replaced by YouTube and other internet outlets for free speech. The cost of internet programming for Educational and Governmental access organizations is often unsupportable by school districts and town governments. Ending the PEG support fee--usually passed on to subscribers for a few dollars a year-- is unacceptable. Hope your guest recognizes this, too.
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