DBS can act as a constraint on cable prices, especially in the ba...
DBS can act as a constraint on cable prices, especially in the basic service tier, according to an FCC staff report. The report found that cable operators risk losing customers when they impose large price increases. “Large, quality-adjusted price…
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increases for the most popular or basic cable service may not be sustainable for cable operators,” the report said. DBS penetration is lower in markets where cable operators carry regional sports channels, the report found. One reason is that cable may be limiting DBS operators’ access to regional sports networks, the report said. The report also found that most cable operators are adding satellite channels nearly as fast as or faster than they are raising total package rates.