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Aspects of the Cable TV Industry

ise agreements typically last 10-15 years, and are essentially automatically-renewable (Marks, 1995, p. B6). The cost to build a cable system is substantial and, even in some of the largest cities, there was usually little incentive for more than one company to attempt to establish a system. The natural result is essentially a monopoly.

Unless there was "effective competition" within a given franchise, the cable system operator was restricted from employing a free-market approach to pricing, simply charging "what the market will bear." Despite this protection for consumers, most complaints about cable service are directly related to the lack of competition within a community. Consumers compare the offerings of cable systems in neighboring communities and frequently discover considerable disparity. Marks (1995) cites the example of Westchester and Nassau counties in New York state. Residents of Westchester were served by a system which offered some 60 channels. In comparison, the Nassau county system, operated by Cablevision, was providing only 27 chan

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Aspects of the Cable TV Industry. (1969, December 31). In LotsofEssays.com. Retrieved 12:34, May 18, 2024, from https://www.lotsofessays.com/viewpaper/1692414.html