The cable TV racket

Common Cause NY recently issued a report regarding the huge campaign donations made by cable television companies to New York politicians.

The three largest cable companies in the state (Verizon, Time Warner and Cablevision) along with the cable industry's trade group have coughed up over $4.3 million in legal campaign bribes (euphemistically referred to as "donations") in the last 10 years to NYS candidates for political office. Like most corporations, they are non-ideological: they bet on winners. In 2002, they gave 80 percent of their "donations" to the heavily favored Republican incumbent governor (who won); in 2006, they gave 82 percent to the overwhelmingly favored Democrat (who also won).

The industry has also spent a staggering $24 million just since 2005 on lobbying in New York. That's just for this one state.

These "donations" have accomplished their goal. Despite the theoretical legalization of competition in the industry some years ago, I am not aware of a single municipality in the state where residents have more than one cable choice.

Furthermore, these three companies have a virtual stranglehold on cable service in the state. A bill sponsored by powerful Assemblyman Richard Brodsky that would've legalized statewide franchises and provided stronger consumer protections for cable subscribers was defeated in the legislature, thanks to heavy industry lobbying. The industry continues to resist a la carte channel choices, despite strong support among consumers.

With their oligarchical control and no competition even amongst themselves in any municipality, the market leaders have no incentive to improve their lousy, overpriced service.