[Random-bits] Aaron Pressman: Price of cable television rises at twice rate of inflation

[James Love]

Subject: reuters on fcc cable report
   Date: Fri, 14 Jan 2000 15:00:56 -0500
  From: Aaron Pressman <aaron.pressman@reuters.com>

Price of cable television rises at twice rate of inflation
    WASHINGTON, Jan 14 (Reuters) - The price of cable television service rose
3.8 percent last year, almost double the inflation rate but much less than rate
hikes in prior years, the Federal Communications Commission said Friday.
   In its annual assessment of the subscription television market, the FCC said
the rate rise between June, 1998 and June, 1999 came as cable operators
increased spending 13.2 percent to upgrade their systems and programming costs
jumped 16.3 percent.
   In March last year, the FCC's authority to regulate cable prices expired but
the industry also faced increased competition from Direct Broadcast Satellite
(DBS) services such as Hughes Electronics Corp.'s <GMH.N> DirecTV and EchoStar
Communications Corp.<DISH.O>
   According to the FCC, 10.1 million households subscribed to DBS in June,
1999, up from 7.2 million a year earlier. Cable subscribers grew to 66.7 million
 from 65.4 million over the same period.
   FCC Chairman William Kennard said satellite carriers would pose an even
stronger competitive challenge in the future because of a law passed late last
year allowing the companies to carry local TV stations.
   "The satellite industry currently offers the most meaningful competition to
cable," Kennard said, adding that the FCC would move "aggressively" to implement
 the new local channel law.
   Overall cable industry revenue is expected to hit $35.3 billion for all of
1999, up 8 percent from $32.7 billion in 1998, the FCC said. Cable companies
collected an average of $529, or $44 per month, from each subscriber during
1999, up from $499, or $41.62 per month, in 1998.
 ((Aaron Pressman, Washington newsroom, 202-898-8312))
Friday, 14 January 2000 14:59:15
RTRS [nN1456676]


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