Rare Medium

If you’re a homeowner in most cities, you have choices as to what television services you receive, how, and who provides them. You’re lucky.

If you live in most apartment buildings, you have only one choice. You can subscribe to the cable company that negotiated an exclusive contract with your building owners or managers or, without the option of an outdoor antenna; you can watch whatever rabbit ears will allow. But all of this may be about to change.

Sunday’s, October 28, 2007, New York Times, reports that the Federal Communications Commission (FCC), the government agency that regulates broadcast and subscription television services is about to strike down the long-existing exclusive contracts between cable operators and apartment buildings.

Tossing those exclusive contracts may do more than give apartment residents more options. It should also make cable companies more competitive and, in the end, that could mean substantially lower monthly cable fees as those companies attempt to retain their apartment subscribers.

Kevin J. Martin, Chairman of the FCC told the New York Times, “Exclusive contracts have been one of the most significant barriers to competition. ‘Cable prices have risen about 93 percent in the last 10 years.’ This is a way to introduce additional competition, which will result in lower prices and greater innovation.”

The FCC’s plans could be of significant benefit to low-income and minority families. FCC officials and consumer groups reported that while 25% of American’s live in apartment building with 50 or more people, however, that figure rises to 40% for Hispanics and African-American households. In situations were competition was encouraged, cable subscribers’ monthly fees declined up to 30%.

Who will compete with cable companies for their current apartment subscribers? This list grows every day. Satellite television companies, small point-to-multi-point wireless television services, and ultimately companies like Verizon Communications and AT&T. Looking into the future, there will be more community based wireless services — much like cellphones today. Even your power company may ultimately provide television programming services; after all few companies have their door-to-door wired infrastructure.

With cable and satellite television programming providers continuing to increase their monthly subscription rates, it’s great to see the FCC encouraging more competition. It’s an especially important step in keeping America from further divisions based on those who can afford information and entertainment and those who cannot.

With the transition from conventional to digital television set to occur in just 478 days, it is a brave new world out there!

<http://www.nytimes.com/2007/10/29/business/media/29cable.html?hp>