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Cable Consumers Report Substantial Benefits in Competitive MarketsRESTON, Va., March 2 /PRNewswire/ -- The American Consumer Institute released today a survey of 883 cable consumers living in newly competitive portions of three Texas communities. That survey asked consumers if they were aware that cable TV competition existed in their community, if they had switched cable providers in the last 6 months, and if they had saved on their cable TV bill as a result of competition. These survey results were included as part of a larger study released today by the Institute, "Does Cable Competition Really Work? A Survey of Cable TV Subscribers in Texas." Additional Highlights from the full study include: had captured nearly 20% of share, indicating that consumers do want more choice. * High Market Churn. 22% of consumers reported to have switched their cable TV or video provider in the last six months, about 50% percent annually. * Declining Prices. One in six consumers reported saving money on their monthly cable bill as a direct result of competition, and most consumers were aware of the new competitor. Half of those switching their cable service provider reported significant savings off their cable bills, averaging $22.30 per month. * Price Competition. Some consumers stayed with their incumbent provider and reported to have saved, on average, $26.83 per month off their average cable TV bill, as a direct result of competition. This provides evidence that competition quickly puts downward pressure on incumbent prices. * Bigger Market. This study finds that wireline competition expands the total size of the cable TV and video market. This means that competition should not adversely affect the local franchising fees that local governments collect from wireline providers and use to support public access channels and other community services. The study finds that competition works, even in a period of less than 6 months. The results of the Institute's study indicate that consumers in the survey area were saving millions of dollars due to competition. If benefits could be replicated across the U.S., this study finds that consumers would receive $23 billion in benefits per year, or approximately $19.00 per month per household. The study also finds that if public policies encourage cable TV and video investment, then they encourage broadband deployment as well. "The survey results show that consumer benefits can come quickly and be quite significant," says Stephen Pociask, president of the American Consumer Institute. The report and survey results support the need for public policies to streamline the local franchising process and encourage competitive entry, as was accomplished in Texas. About The American Consumer Institute The Institute is an independent consumer organization committed to providing information, analysis, and policy research to the public for the betterment of American consumers. The Institute is primarily composed of volunteer public policy experts covering a wide range of issues. For more information about the Institute or to download a copy of the study visit http://www.theamericanconsumer.org/. Specific questions about the study should be directed to Stephen Pociask at 703-471-3954. The American Consumer Institute CONTACT: Ana DeFelice, +1-202-772-2182, or [email protected], forAmerican Consumer Institute Web site: http://www.theamericanconsumer.org/ |