Cable Prices Have Risen Four Times the Price of Inflation

[Brovane]

I agree 100%. The thing is, if you have a situation where effective competition is unlikely or impossible, it needs to be regulated differently than a competitive marketplace.

I do agree about regulation. My concern is that the companies inolved will twist the regulation and we will have a regulated marketplace with crony capitalism protections put in place. I also think the Internet piece and the TV/Broadcast need to be look at separately. The big issue I see with TV/Broadcast is the bundling and the forcing of people to get TV channels they never watch, especially sports channels. This has caused a huge inflow of money into pro sports and we see the effects of this. I think the government needs to force the un-bundling through regulation on the providers.

 

[Thebobo]

The First Honest Cable Company - NSFW

 

[PokerGuy]

No need to regulate business.

The "Free" market always does the right thing, right?

Uh, what "free" market are you talking about? You mean the one where the local governments grant monopolies to a single provider? You call that "free"?

There is no "free" market in most places, there are often very limited choices for broadband. Either the market needs to be free and have real competition, or the ISP's need to be regulated like a public utility -- the hybrid we have gives us the worst of both worlds, no competition and no regulation.

 

[Fern]

I would like to see some financial info (profit margin etc.) before blaming the price increases 100% on cable/satellite providers. Seems to me the content providers that cable/satellite companies have to pay are always jacking their prices too.

Fern

 

[CPA]

Just read that Disney process are going up $4 pet ticket. That's a greater than 4% jump. Where's the thread of outrage?

 

[PokerGuy]

Just read that Disney process are going up $4 pet ticket. That's a greater than 4% jump. Where's the thread of outrage?

Does Disney have a monopoly that forces me to go there?

 

[CPA]

Does Disney have a monopoly that forces me to go there?

Does cable force you to watch TV?

 

[fskimospy]

Just read that Disney process are going up $4 pet ticket. That's a greater than 4% jump. Where's the thread of outrage?

Why are you attempting to equate internet access to a trip to disney world? Internet access is broadly considered a necessity for operating in the US in many capacities. Riding the tea cups isn't.

 

[CPA]

Why are you attempting to equate internet access to a trip to disney world? Internet access is broadly considered a necessity for operating in the US in many capacities. Riding the tea cups isn't.

This thread isn't about internet access costs, it's about basic cable costs. Neither are a necessity.

BTW, just noticed Dave started a thread about Disney's price increase.

 

[andy2000]

A big part of the problem is channel bundling. Even if the cable company wanted to let customers pick and choose channels, the channel providers won't let them. For example, if you want one Viacom channel, you have to take them all. I know I only watch about 10-20 channels out of over 200. I'd love to just pay for the ones I want.

 

[Exterous]

No need to regulate business.

The "Free" market always does the right thing, right?

Come on - you can't possibly think that the cable market could be considered free can you?

Just read that Disney process are going up $4 pet ticket. That's a greater than 4% jump. Where's the thread of outrage?

So we have you to blame for this?

http://forums.anandtech.com/showthread.php?p=36375388&posted=1#post36375388

 

[PokerGuy]

Does cable force you to watch TV?

Actually, in most cases there IS competition for watching tv / entertainment. That's not the problem. The problem is the lack of competition in the broadband internet market. Access to the internet has become pretty close to a necessity nowadays, just like any utility. Sure you can do without it, just like you can do without electricity, but it's not a realistic option.

 

[CPA]

Actually, in most cases there IS competition for watching tv / entertainment. That's not the problem. The problem is the lack of competition in the broadband internet market. Access to the internet has become pretty close to a necessity nowadays, just like any utility. Sure you can do without it, just like you can do without electricity, but it's not a realistic option.

Again, this thread wasn't about internet access, but if we are going to bring it in the discussion, I have the option of DSL (from more than one provider), cable, and satellite internet. And I live on the outskirts, even rural are of a large city. There is competition.

 

[PokerGuy]

I have the option of DSL (from more than one provider), cable, and satellite internet. And I live on the outskirts, even rural are of a large city. There is competition.

Congratulations that YOU have options, many of us do not (I have one broadband provider option. That's it.) There is effectively no real competition in most of the country for high speed internet service, while there is plenty of competition for tv/entertainment options.

I have no problem with companies jacking up the rates for tv programming etc, everyone can decide if they want to pay those rates or not, and there is competition. I do have a problem with the lack of competition for broadband internet access.

If thread was only about the TV aspect of cable, apologies for side-tracking it

 

[dmcowen674]

I have the option of DSL (from more than one provider), cable, and satellite internet. And I live on the outskirts, even rural are of a large city. There is competition.

You do realize you are the exception no the rule in the U.S. right?

Or have you never left your backyard in your life?

 

[shortylickens]

EVERYTHING is an alternative to cable.

Pickles, cars, houses, socks. Of course thats not helpful info.

However, satellite, DVD's, and movie theaters ARE a good substitute. The reason people are paying ridiculous cable prices is because they want to. If the majority of them stopped paying the companies would be forced to slash prices.
But the customers wont do that. And the cable companies know it.

Maybe cable is addicting, like cigs.

 

[realibrad]

EVERYTHING is an alternative to cable.

Pickles, cars, houses, socks. Of course thats not helpful info.

However, satellite, DVD's, and movie theaters ARE a good substitute. The reason people are paying ridiculous cable prices is because they want to. If the majority of them stopped paying the companies would be forced to slash prices.
But the customers wont do that. And the cable companies know it.

Maybe cable is addicting, like cigs.

The issue is not that people are willing, its the issue of monopoly and the implications they have. Innovation is stifled under monopolies, and we simply don't know what could have been done had monopolies not been applied.

Its simply not healthy to stifle innovation. Let the cable companies compete with everything, be it other cable companies or other mediums. Why would you limit competition to other types of providers? Why not let cable companies compete on all levels?

 

[MagickMan]

5-19-2014

http://www.dslreports.com/shownews/Cable-Prices-Have-Risen-Four-Times-the-Price-of-Inflation-129012

Cable Prices Have Risen Four Times the Price of Inflation

A new report by the FCC (pdf) on the cost of television services in the United States found that prices have risen four times the price of inflation over a one year span.

The report notes that basic cable prices jumped 6.5% during 2012 while expanded basic cable prices rose by 5.1%. The rate of inflation as measured by the Consumer Price Index was 1.6% during that same period.

How is it that you can understand that cable prices aren't matching inflation, but you're too stupid to realize that gas prices are?

Fascinating... :hmm: