More than 80 percent of American
consumers believe better prices and service will emerge if cable TV companies
have to compete for customers, and most of those consumers want their elected
officials to take action to encourage competition, according to a survey
released today by national advocacy group Consumers for Cable Choice.
The U.S. Senate Judiciary Subcommittee on Antitrust, Competition Policy
and Consumer Rights meets Wednesday to discuss the status of competition in
the industry and consider ways to free consumers from monopoly cable
television service.
"Americans want choice, competition and more innovation in cable
television and we are encouraged that the Committee Members are listening to
those consumers and taking on this important policy issue," said Robert K.
Johnson, president of Consumers for Cable Choice. "Our survey clearly shows
that Americans want competition so they can get better prices, better service
and more innovative service."
The Senate subcommittee meets Wednesday, September 28, 2005, at 2 p.m. in
Room 226 of the Dirksen Senate Office Building for a hearing that has been
headlined as "Video Competition in 2005 - More Consolidation, or New Choices
for Consumers." Several bills are pending in the Senate that will reform the
cable industry to allow competitive choices for consumers, including the Video
Choice Act of 2005 (Rockefeller/Smith).
Under the current cable monopoly system, cable rates have increased 86% in
the past decade, according to U.S. government data. At the same time, in
customer satisfaction surveys by J.D. Power and others, cable consistently has
received poor marks.
The Consumers for Cable Choice survey was conducted September 7-11 and
asked 1,000 people across the country about their views on cable competition.
Survey highlights:
- 87 percent said there should be more choices of TV providers so
consumers can keep prices in check;
- 83 percent said it's time there are more choices for TV programming
because competition will keep cable companies from raising rates all
the time;
- 82 percent said there should be more companies offering TV programming
and video on demand services to compete with local cable providers;
- 76 percent said if customers had a choice for TV service, cable
companies would be forced to offer better customer service;
Additionally, more than two-thirds of consumers indicated they would have
a more positive opinion of elected officials at all levels if they helped
bring more consumer choice and greater competition for television services.