No CBS for You

Time Warner Cable went through with its threat to shut down CBS TV and its affiliates across the country on Friday. This is also includes CBS' cable channel, Showtime. Now, I realize that TWC is entitled to make a profit, because its primary obligation is to its stockholders. But, there are unrealized, or at least, unconsidered ramifications by doing this.

Many people rely on traditional television news for information. I am sure, that in Los Angeles and Dallas, as there is in New York, television that is still broadcast over the air in digital format. And if you have a digital television or receiver, this shut-down does not affect you, for "basic" CBS.

But, the reality is that most people subscribe to a cable service for their TV needs. Whether it is Time Warner, Cablevision, Comcast, Cox or Verizon FIOS, generally, the cable company in your area maintains a monopoly for your television viewing habits. Competition is sparse, at best.

A quick history.

In 1984, AT&T was ordered to dissolve itself into smaller companies as settlement for a class action suit, brought against it because it was a monopoly which controlled all local and long distance phone communications of the time, as well as, the developing online industry, still in its infancy. How is that now working out?

Now, the same thing has happened in the cable industry. Five companies control more than 65% of all TV in the United States, and by definition, that is a monopoly. There are others, but these are the top five.

Since 2007, each of these companies has threatened, and followed through with, shutting down various cable channels because of contract disputes. Then, advertisements would appear on the shuttered network channel by the cable company saying how terrible the network was, by not bargaining in good faith. Conversely, the network would do the same.

In the end, we know that this dispute between CBS and TWC will be resolved. They will kiss and make up as most quarrelers do and the participants will live happily ever after.

Well, not everyone. The subscribers in LA, NY and elsewhere will, once again, pay the increase in the rates TWC will charge us for the privilege to watch television, maybe more than the one that CBS rejected initially. And we will be relieved that we can once again, sit mindlessly in front of the TV to see Bob Scheiffer, Judge Judy and Steve McGarrett, and think all is right with the world.

But, of course, it's not. Because next time, another company will do the same and, ultimately, beat us up, too. There is really no one to protect the consumer from the ongoing cable abuse, is there?

Thanks for nothing, FCC.