FCC Cable Bureau hopes to have - plan for studying the the effect of cable program prices on cable rates

Television Digest with Consumer Electronics, March 16, 1998

FCC Cable Bureau hopes to have plan in place within few weeks on how to gather information on impact of cable program prices on cable rates, as requested by Chmn. Kennard (TVD Jan 19 pl). Plan is expected to rely on voluntary provision of information by system operators and program providers, we're told, in part to avoid long delays.

Proposal to compel industry to provide information never went to 8th floor, we're told, but indications are that at least 3 commissioners would have opposed it anyway. "We don't envision having great trouble getting information," official said. He said result of voluntary compliance won't have same statistical reliability as mandatory cable rate surveys, but Bureau simply will disclose sources of its information mid let readers make judgments. Goal is to determine: (1) What impact program cost increases have on rates. (2) Whether program increases are from affiliated or independent cable networks. (3) Whether some of boosts should be offset by new revenue from ads and other sources. Kennard is said to want information by end of summer, allowing enough time for FCC action before rate regulation authority sunsets. Cable Bureau, ironically, is gathering some of same information in its handling of rate complaints, but data can't be used in program survey. In rate cases where franchise authorities have raised issue of ad and other revenue, Bureau has required system operators to provide some of same data, but said that information must be kept confidential and can't be used in programming inquiry.