In a filing with the FCC last week, the American Cable Association (ACA) argued video programming costs have doubled over the past eight years, yet ISPs have been limited in their ability to pass along higher prices to customers because of an increase in competition from alternative video outlets like Netflix and Amazon and customer push-back in the form of cord-cutting and cord-skimming. But, maybe the bigger picture is how cable prices have risen relative to the average increase in general prices in the economy over the same time period.
Comcast argues that a merger with TWC would allow it to more effectively negotiate programming deals with non-affiliated content providers for its 33+ million video/broadband subscribers. But, what about the remaining 70 million customers, many of whom are in rural communities? How do they get to stem the rise in these costs?
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