Telecommunications: The Effect of Competition from Satellite Providers on Cable Rates

Stanley J. Czerwinski · Amy D. Abramowitz

Apr. 2001 · DIANE Publishing

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Cable TV companies faced little competition in the market for subscription video service until 1994, when a new generation of satellite service known as direct broadcast satellite (DBS) was introduced. Since late 1999, DBS operators are now permitted and have begun to offer local broadcast signals in many markets throughout the U.S. This report provides information on the extent to which the level of subscribership (or "penetration") of DBS has influenced cable rates, and other key factors that may influence the level of cable rates. Also provides a brief history of the subscription video market.