Blumenthal Statement on FCC Proposal on Pay-TV Video Boxes

(Washington, D.C.) – U.S. Senator Richard Blumenthal today applauded a proposal by Federal Communications Commission (FCC) Chairman Tom Wheeler to increase choice and innovation in the video-box market. The proposal would create a framework for device manufacturers and innovators to develop new technologies that allow consumers to access video programming without having to rent a box from their pay-TV provider.

“Consumers deserve protections from hidden, unjust, unjustifiable fees for set-top boxes. While the price of televisions, computers and mobile phones have significantly declined in the past several years, the cost of set-top boxes has sky-rocketed for one simple reason – consumers have no alternatives. Cable companies make close to $20 billion a year renting these boxes to consumers, and they have no incentive to change, because they face no competition.

“The FCC today took the first step to break open this market and help consumers retake control of their monthly cable bills. By requiring cable and satellite companies to provide a common technological standard to app developers and electronics manufacturers, this proposal would force television providers to compete just like in any other market. Opening the marketplace to innovation will have a positive impact not just on prices, but also on consumer experience.

“I will be working with my colleagues to provide comments in this rule-making and to ensure the FCC adopts it and gives consumers the competition they deserve.”

Senators Blumenthal and Edward J. Markey (D-Mass.) last year released findings from their investigation of the pay set-top box market that found consumers have little choice in their pay-TV video boxes and that the average household spends more than $231 annually on video box rental fees. With approximately 99 percent of customers renting their set-top box directly from their pay-TV provider, the set-top box rental market may be worth more than $19.5 billion per year.

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