Cable Subs Pay the Price
March 23, 2007 4:32 PM
Mediacom Communications, a small cable multiple system operator, lost its battle with Sinclair Broadcast Group, paying the broadcaster about 50 cents to carry its station signals. Now it’s time for Mediacom’s cable subscribers to share the MSO’s pain, a 4 percent to 8 percent rate hike effective this May.
For now at least broadcasters have the law on their side. Personally, to me, this is just another one of those unintended consequences of the 1992 Cable Act. The act was supposed to protect consumers from unfair price increases, in part, and now just the opposite is happening.
And that’s too bad, especially for Mediacom which lost 7,000 cable subscribers when the Sinclair stations went dark in its markets for almost one month.
Do you think the regulatory deck is stacked unfairly in favor of broadcasters? I do.