The cable television industry in Illinois has been unfairly taking a bashing in the Tribune. In a recent article, the Tribune reported incompletely one side of the story regarding rates and viewership.
The cable television industry in Illinois currently serves over 1.8 million subscribers throughout the state. Since deregulation of the cable industry in 1984, cable subscriptions have increased by over 850,000 new viewers. Nationwide, basic cable subscribers have grown from 37 million in 1984 to 52 million in 1990. Contrary to the story regarding the impact of rate increases on viewers, our viewership has increased, while broadcast television viewership has declined dramatically.
The average basic cable rate statewide in Illinois is approximately $20 per month for 40 channels of 24-hour news, sports, entertainment and business programming. Broken down, that represents 67 cents per day. The average viewer watches 150 hours of television per month-for $20.
Rate increases in our industry are a concern to us. Nobody likes them and we are working diligently to control them. However, Congress deregulated cable rates in 1984 to spur investment by cable companies to improve programming and customer service. The industry proudly has done precisely that.
Since 1984, this industry has invested $1.5 billion in new programming and $5.6 billion in plant and equipment improvements. Those costs are reflected in our pricing.
The Tribune headline declared ”Rate hikes turn cable viewers off.” The reality of this industry says otherwise.
