Testimony Before the Senate Committee on Commerce, Science and Transportation on Escalating Cable Rates: Causes and Solutions
March 25, 2004
Consumers Union and Consumer Federation of America believe that cable television's continuous upward pricing spiral reflects a major failure of market forces and public oversight since Congress launched cable deregulation in 1996. In that time, cable rates have ballooned nearly three times faster than the rate of inflation. Indeed, according to the Bureau of Labor Statistics which measures cable rate increases and adjusts cable price increases by crediting the industry when it adds channels rates have shot up a staggering 56% since January 1996, while inflation increased by only 21% over that same period.