Twenty years ago consumers got the right to buy their own set top box. But that right may be taken away:
Cable TV is utilized by many Americans every day. It provides access
to programs that people want and some they don't. And polls show that
few believe they are getting good value for the billions paid to cable
companies every year. Complaints go beyond cost to quality,
reliability, backward technology and poor service. Now Congress is
being pressured by big cable lobbyists to further lock in customers and
limit our choices even more.
While innovative companies and
better technology offer hope to improve how we watch TV, Congress is
being asked to reopen a previously won battle for consumers that allows
people to buy their own retail TV "set top box" -- rather than having to
rent the one their cable company offers.
(see story here)
But here's a bigger threat to competition:
Telecom giant AT&T is in "advanced talks" to buy satellite TV service DirectTV for about $50 billion, according to Bloomberg News, which spoke with people familiar with the matter.
(see story here)
Competition is the force that drives the economy forward, it drives innovation. In some instances monopolistic structures can be efficient (economies of scale), though even these must be closely monitored, but I don't see how decreasing competition would be beneficial in this industry.
ReplyDeleteI agree with Joe, a decrease in competition and an increase in monopoly power hinders innovation because big companies will not have any incentive to change if customers do not have any alternative options.
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