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Cable Monopoly vs. The NFL Devotee

7 May

Migrated from ESPN.com blog February 2, 2011

Originally published May 7, 2008

To say that I am displeased with the current state of cable television is an understatement.

According to a report by the Consumer Federation of America, “Approximately 40% of the top channels (measured by subscription or prime time ratings), which command the highest prices, are owned in whole or in part by cable operators or companies that have large ownership stakes in cable companies.”

**Actually, for my sanity’s sake, and the fact that this is a blog, and not in any way a scholarly paper, please take note that any statistics/facts I reference have come from the above mentioned report.**

Cable companies have continually argued that the reason for price increases is two-fold. One, that the cost of programming has gone up, and two, that they need increased profit margins to put system upgrades in place. With little research, these arguments are quickly shot down. In answer to the first argument, the expensive channels are largely those owned by the cable companies (thus they’re profiting from them anyway). If cost were truly the reason for price increases, their profit margins would not be rising so rapidly. Operating revenue increased 30% per subscriber between 1997 and 2001. I somehow don’t believe that the cost of programming has “forced” cable companies to raise prices by an average margin of close to $10 per subscriber per month (and that was as of 2001–it has continued to rise).

Returning to the fact that 40% of these expensive channels are owned by the cable companies, we realize that the money is going directly back into their pockets. As long as they continue to monopolize and force out other providers, (like satellite–which has had the FCC refuse any mergers that might give them any hope of competing with cable), there will be no such thing as competitive pricing.

The truth is that it would cost those cable companies 2 cents per subscriber per day to offer the NFL Network on a basic cable package. They refuse to do this because NFLN is an independent channel (not owned by them) and so the money doesn’t immediately come back to them. It’s much better to line their pockets with profits from offering less popular (yet more expensive) channels like Golf and Versus in the basic package. You may never watch them (or maybe you do, I have nothing against golf), but you’ll certainly pay through the nose for them.

The FCC must be compeled to allow new competition into the market via satellite and wireless providers. They have to stop allowing cable companies to monopolize multi-unit dwellings in order to facilitate fair competition. Finally, they need to put in place better nondiscrimination rules to keep cable companies from stifling independent networks or relegating them to “special packages” only.

In the past several years, my cable bill increased from approximately $50/month to somewhere in the neighborhood of $90/month. It was at that point that I could no longer justify paying for it. Do I miss ESPN and NFL Network? Of course I do.

But until there are some regulations in place to benefit consumers and independent networks, the bar or an internet game tracker will have to do.

Thoughts on Pittsburgh, PA as the True Titletown

2 May

Migrated from ESPN.com blog February 2, 2011.

Originally published on my ESPN.com blog on May 2, 2008

Also  published by ESPN.com as part of their “Titletown” series on June 18, 2008 at: http://sports.espn.go.com/espn/titletown/news/story?id=3448538

 

I grew up in a city more devoted to it’s sports teams than perhaps anything else. Until I was 18 years old, I never lived anywhere else and just assumed that everywhere was like Pittsburgh. I just assumed that people, no matter who they were, loved their local sports team. Ask anyone in Pittsburgh if they love the black and gold, and I can nearly guarantee that you will hear a resounding “yes!”

When I moved away to college, I met people from all over the United States. Every time I met someone, I would consider the sports teams in the vicinity of their hometown and ask, “So, you’re from (city), I guess you’re a (insert local team) fan, right?”

And for the first time, I heard “No, not really.”

Really?

Back home, I remembered the jubilance of an entire city after back to back Stanley Cups in 1991 and 1992, the entire section in the paper devoted to Mario Lemieux following his first retirement, the stories of the legendary men that were the Steelers of the 1970s, the tears following Super Bowl XXX, and the sense of nostalgia the day they tore down Three Rivers Stadium. The whole city had this one thing in common, this complete solidarity no matter what. Two years ago, when the Steelers won Super Bowl XL, I was watching from my apartment in Boston, MA. After the game, tears were streaming down my face. I was overwhelmed with happiness to see the team I loved so much win the big game, but there was a distinct sadness too. There was nothing I wished more than that I could be in Pittsburgh, because I knew it had to be an incredible sight.

I have heard the argument that “no town without the big four should even be considered for Titletown,” but I challenge you to find fans more dispersed throughout the world who maintain their loyalty. It doesn’t disappear when they transplant to a different city, it doesn’t so much as shake. I’ve found fans in Boston, MA and even so far as the Netherlands. To those who would still argue that fandom doesn’t make a Titletown, I say that Pittsburgh has grown athletes like Joe Montana, Dan Marino, Joe Namath, Johnny Unitas, and Ken Griffey, Jr. who have brought admiration to their respective franchises. It’s been the hometown of respected coaches like Marvin Lewis, Marty Schottenheimer, Terry Francona, and Dick Nolan. What’s more, that’s just a fraction of the talent to come out of Pittsburgh. Consider then, what Pittsburgh athletes have contributed to teams across the nation.

I live in Washington, DC now, and for the first time in a long time, I’m close enough to make the drive home every so often. Each time, I love to walk through Pittsburgh’s Strip District and watch the endless sea of black and gold caps, with a blue and gold thrown in here and there to salute the Pitt Panthers. They’re all there, remembering the 5 World Series, 5 Super Bowls, 2 Stanley Cups, and countless number of titles from the University of Pittsburgh’s sports programs. It’s the “City of Champions,” the “Cradle of Quarterbacks,” and it is most assuredly Titletown, USA.

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