CFA: US consumers overpaying for pay-TV by billions of dollars

CFA: US consumer overpaying billions for pay-TV

CFA: US consumer overpaying billions for pay-TV

The Consumer Federation of America and Public Knowledge sent a letter to the Federal Communications Commission urging the agency to begin a rulemaking proceeding to reform the video set-top box market.

According to Consumer Federation of America’s analysis, pay-TV subscribers are overpaying somewhere between $6 and $14 billion annually.

The CFA says the FCC should promote a competitive set-top box market to reduce this financial burden on consumers, create opportunities for more innovative devices, and encourage the growth of diverse and independent programming.

“Cable company abuse of market power in the set-top box market has probably cost consumers over $100 billion in the past two decades, but the pocketbook impact is only part of the story,” explains Mark Cooper, Director of Research at Consumer Federation of America.” This is the most egregious example of the failure of federal policy to deliver the competition promised by the Telecommunications Act of 1996, precisely because similar markets that were competitive—like cell phones, computers and TV sets—delivered so much higher quality at a fraction of the cost.”

Reform would benefit consumers in a number of ways, says the CFA, BY giving them better access to diverse and independent programming on more intuitive and innovative devices, as well as potential cost savings. ”To realize these benefits to consumers, we urge the Commission to quickly move forward with a rulemaking proceeding to implement reforms in this area,” reads the letter.

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