Our View: FCC could deal small blow to cable’s TV monopoly
Monopolies are such easy targets. No one likes them because the companies that have no competition almost always end up either abusing their customers or taking them for granted. Consider cable TV providers.
Want to see the Giants but don’t care anything about those other 10 channels in the “bundle”? Too bad, you gotta buy them all.
Thought you were paying one price, but that was only for the first three months and now it’s twice as high? Too bad; it’s in the fine print.
Your cable went out and no one can fix it for a week? Too bad, must be mice in your walls.
Thursday, consumers might finally see an easing of their cable frustrations. The Federal Communications Commission is scheduled to consider a proposal to allow other companies to make and sell the set-top boxes through which all your programming must pass before it gets to your eyes. That might sound techie and arcane, but the FCC estimates that most households pay around $230 per year to rent those little boxes (though some companies allow you to buy it).
For the cable companies, that amounts to anywhere from $6 billion to $18 billion per year. You pay it because you have no choice.
This was supposed to be fixed back in 2006, when the FCC first ruled cable companies had to allow competitors’ boxes to sit atop TV sets. But the cable companies refused to share important coding information, and the plans of companies such as Sony, Google and Apple fizzled. Now, the issue is back. And this time the FCC is expected to get serious.
The recommendation is being made by the FCC chairman, Tom Wheeler; if it passes, other companies will be able to sell you that box (ostensibly lowering your monthly cable bill, at least for awhile). As competition heats up, you’ll be able to buy cheaper, better boxes that do more.
Many say that will change the way we watch TV, making it easier to search across platforms – Netflix, Hulu, the Internet, cable channels – for shows you want to see. Or, consider how many people watch TV now – with their pad-computer open so they can check an actor’s bio or historical facts or stats for athletes. Instead of having to use the pad, you’ll be able to route that info directly onto your screen. That’s just the beginning.
Naturally, cable companies are fighting. They point out there’s never been more consumer choice than there is now. That’s what they always say. They claim this is an attempt by big tech companies to horn in on their monop … er … business model. There might be truth to that one, but so what?
Competition is long overdue, because for two generations there hasn’t been any. In virtually every city in America you have only one choice for getting cable. And with that choice comes with the box that you pay a monthly fee to rent.
You do have one other choice. You can cut the cord. Thousands of people do it every day, getting rid of cable and installing an antenna capable of picking up digital signals from distant towers (most are between Lodi and Thornton).
You’ll still need an Internet provider to get Amazon or Hulu programming, but that’s cheaper than paying for channels you’ll never watch. Or, you can watch them on your smartphone, relaying that signal to a larger monitor.
The cable companies don’t want competition. Huge profits are easier to make when customers don’t have any other choice.
This story was originally published February 17, 2016 at 4:39 PM with the headline "Our View: FCC could deal small blow to cable’s TV monopoly."