The average monthly rate for cable programming services and equipment in the U.S. increased by 8.2% from $37.06 to $40.11 between July 2001 and July 2002, according to a new report on the cable industry released by the FCC. Over the same period, the average number of channels served increased from 59.0 to 62.7 channels, while the nation's consumer price index rose by 1.5%. Some key findings of the report:
- Operators facing effective competition charged on average,$37.84 per month, while operators not facing competition were charging $40.26. Both groups increased their pricing by 8.2% over the 12-month period.
Operators attributed over 60% of their rate increases to higher programming costs.
Direct broadcast satellite (DBS) penetration now exceeds 20% of all television households in some 30 states and over 30% in five states.
FCC Commissioners Copps and Adelstein issued statements criticizing the report for lacking deeper analysis of the data it presents on cable rates.
