New FCC report throws a spotlight on cable prices

A report from the FCC indicates basic cable TV prices have risen at a rate 4X the rate of inflation over the last 18 years.

In the last year alone, the average cost of basic service rose 4.6% to $63.03.

What to watch: The FCC report, which is full of details on the impact of pricing in "non-competitive" markets, is likely to be referred to during discussion in Washington DC on the Time Warner Cable (TWC)- Comcast (CMCSA) merger.

Related stocks: CVC, CHTR

Full FCC report (.pdf)

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Comments (5)
  • Patent News
    , contributor
    Comments (1475) | Send Message
    the deal for att buying directv and comcast time warner must both be blocked unless they both commit to lowering prices or holding off on raising them for at least 5 years and be subject to 5 year reviews!
    19 May 2014, 09:17 AM Reply Like
  • phxcrane
    , contributor
    Comments (764) | Send Message
    Or people could just stop paying these prices. Do you really need 600 channels. Do people even realize that they can still get local channels free. The bundled model will fall if government gets out of the way.
    19 May 2014, 09:24 AM Reply Like
  • Mo Money 2011
    , contributor
    Comments (78) | Send Message
    Yes, local channels are free with an HDTV antenna... when will people learn what's old is new again. Anyway, content will continue to rise in price for the best content and the worst content will start to fade away as those channels and shows/movies are not included on the distributor's line-ups. Some content deals have surprised me though-- Weather Channel got its price RAISED recently when one of the PayTV operators wanted it to go down (stating that everyone gets weather on their phones/tablets anyway)...
    19 May 2014, 10:28 AM Reply Like
  • Esekla
    , contributor
    Comments (4791) | Send Message
    Or, the FCC could realize that wires are just like sewers and streets. They should be in the public domain and maintaining them should be a matter of public auction, while providing data (be it phone calls, shows, or internet) should be completely independent of who maintains the wires.


    Gas and electric lines are moving in this direction. Wires are no different!
    19 May 2014, 10:31 AM Reply Like
  • Scott Ryan
    , contributor
    Comments (570) | Send Message
    I think the CMCSA/TWC acquisition will sail on through because Brian L. Roberts is one of Barack Hussein Obama's largest contribution bundlers. This deal was possibly "approved" on the golf course between Roberts and Obama months ago. It is obvious that Obama abuses his power with all federal agencies, not just the IRS and the Justice Department. He could have easily instructed his appointees at the FCC to approve this deal.


    That's how things work in the bannana republic, 3rd world type dictatorship we have become. Of course, I expect some jaw boning by some politicians so they can make it look as though they attempted to prevent the acquisition in the eyes of their credulous constituents but it will all be a rouse.
    19 May 2014, 02:05 PM Reply Like
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