• by Karlene Lukovitz  @KLmarketdaily, June 23, 2023

On Thursday, the Federal Communications Commission proposed that cable and satellite TV operators be required to provide consumers with the “all-in” price for video programming services in promotions and subscriber bills.

President Joe Biden issued a statement in support of the proposed rule, which now enters a 30-day public comment period.

“My Administration’s top priority is lowering the cost of living for the middle class, and that includes cracking down on companies’ use of junk fees to hide true costs from families, who end up paying more as a result,” President Biden said. “Too often, these companies hide additional junk fees on customer bills disguised as ‘broadcast TV’ or ‘regional sports’ fees that in reality pay for no additional services. These fees really add up: According to one report, they increase customer bills by nearly 25% of the price of base service. The FCC all-in pricing proposal would help consumers comparison shop between providers and increase competition for viewers.”

“Not only would this proposal reduce cost confusion and make it easier for consumers to compare services, but it would also increase competition among cable and broadcast satellite providers through improved price transparency,” Rosenworcel added in her own statement announcing the Notice of Proposed Rulemaking yesterday.

The notice specifically states that the regulation would allow consumers “to compare programming costs against alternative programming providers, including streaming services.”

Rosenworcel announced the FCC’s intention to introduce such a regulation in March.

The proposed regulation would require cable and satellite providers to state the total cost of video programming service clearly and prominently, including broadcast retransmission, regional sports programming and other programming-related fees, as a “prominent single line item on subscribers’ bills and in promotional materials.”

CableTV.com recently analyzed a bill from one cable provider, Optimum. A partial list of additional fees identified as of June 12, 2023 is shown above. 

With high fees driving the accelerating exodus from pay-TV services, that industry will no doubt lobby hard against any measure that might give consumers more impetus to change providers.

YouTube TV was the only U.S.-based pay-TV operator to show subscriber growth in Q1, which saw the sector’s largest-ever quarterly losses, according to the latest Leichtman Research Group analysis.