Moffett: Cable Must Tough It Out

MOFFETT: CABLE MUST TOUGH IT OUT
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
A Q&A with Sanford C. Bernstein senior analyst Craig Moffett, a cable industry observer. On possible Federal Communications Commission regulation of the industry, he says, "Probably more of the same of what we saw in 2007, which is lots of smoke but not all that much fire. There were lots of nasty headlines in 2007 but, with the exception of making set-top boxes more expensive and possibly -- and I emphasize "possibly" -- abrogating MDU [multiple-dwelling-unit] contracts, not that much happened that has lasting import." Is cable TV too expensive? "No. But cable has lost the high ground in the conversation with consumers about its own value proposition. Cable is charging 20 cents an hour for television viewing for the average household. That’s a pretty good deal compared to virtually any alternative. Cable’s competitors are raising prices even faster than cable. Cable actually has a decent story to tell with respect to pricing. But it hasn't done a very good job of telling it."
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