Summary: Despite congressional efforts to rein in cable television rates and promote competition in the subscription television market, the average bill for cable television has risen faster than the rate of inflation in recent years. Also, competition in the market is developing more slowly, and shaping public policy in telecommunications markets is increasingly difficult as technology rapidly redefines the industry. This report provides information on (1) the status of competition in the subscription television market, (2) the extent to which ownership ties between cable companies and program suppliers may be affecting the development of competition, and (3) key factors that may influence the development of competition in the future. GAO found that the cable industry maintains a high share of the subscription television market nationally and is currently not very competitive. But, the satellite industry competes against cable companies throughout the United States, and its market share has increased considerably since the introduction in 1994 of a new generation of satellite television service known as direct broadcast satellite service.
