[Federal Register Volume 61, Number 16 (Wednesday, January 24, 1996)]
[Notices]
[Pages 1932-1933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-959]



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FEDERAL COMMUNICATIONS COMMISSION

[CS Docket No. 95-61, FCC 95-491]


Annual Assessment of the Status of Competition in the Market for 
the Delivery of Video Programming

AGENCY: Federal Communications Commission.

ACTION: Second Annual Report to Congress.

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SUMMARY: Section 628(g) of the Communications Act of 1934, as amended, 
47 U.S.C. 548(g), requires the Commission to report annually to 
Congress on the status of competition in the market for the delivery of 
video programming. On December 11, 1995, the Commission released its 
second such annual report (``1995 Report''). The 1995 Report provides 
data and information that summarize the status of competition in the 
market for the delivery of video programming and update the 
Commission's first Annual Assessment of the Status of Competition in 
the Market for the Delivery of Video Programming (``1994 Report''), 
summarized at 59 FR 64657 (December 15, 1994). The 1995 Report is based 
on publicly available data, filings in various Commission rulemaking 
proceedings, and information submitted by commenters in response to a 
Notice of Inquiry in this docket, summarized at 60 FR 29533 (June 5, 
1995).

ADDRESSES: Federal Communications Commission, 1919 M Street NW., 
Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Marcia A. Glauberman, Cable Services 
Bureau (202) 416-1184 or Martin L. Stern, Office of the General Counsel 
(202) 418-1880.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 1995 
Report in CS Docket No. 95-61, FCC 95-491, adopted December 7, 1995, 
and released December 11, 1995. The complete text of the 1995 Report is 
available for inspection and copying during normal business hours in 
the FCC Reference Center (Room 239), 1919 M Street, N.W., Washington, 
D.C., 20554, and may also be purchased from the Commission's copy 
contractor, International Transcription Service (``ITS, Inc.''), (202) 
857-3800, 2100 M Street, N.W., Suite 140, Washington, D.C. 20037. In 
addition, the complete text of the 1995 Report is available on the 
Internet at http://www.fcc.gov/Bureaus/Cable/Reports/fcc95491.zip

Synopsis of the 1995 Report

    1. The 1995 Report examines the cable television industry, other 
existing multichannel video programming distributors (``MVPDs''), and 
other existing and potential competitors to cable television. In the 
1995 Report, the Commission also examines market structure and 
competition, measures horizontal concentration in the cable television 
industry, and evaluates vertical integration between cable television 
systems and programming services. In addition, the 1995 Report provides 
information on issues of access to programming and technical advances. 
Finally, the 1995 Report assesses the status of competition in the 
market for the delivery of video programming by examining the extent of 
competition, evaluating market performance, and reporting on existing 
and potential impediments to entry and competition, including strategic 
behavior that could deter entry and regulatory, legal, and other 
potential impediments.
    2. Key Findings. 
    
[[Page 1933]]

     Industry Growth--Since the 1994 Report, subscriber 
penetration, average system channel capacity, the number of programming 
services available, revenues, expenditures on programming, and capital 
investment generally have increased for the cable industry.
     Horizontal Concentration--Since 1994, there also has been 
an increase in the horizontal concentration of cable multiple system 
operators (``MSOs'') nationwide and increased regional ``clustering'' 
of cable system ownership. Although the cable industry is moderately 
concentrated nationally, local markets for the distribution of 
multichannel video programming tend to be highly concentrated as 
measured by subscribership among all MVPDs.
     Competitive Entry--Although the percentage of subscribers 
choosing competitive alternatives to incumbent cable operators has 
increased since our last report, cable subscribership continues to 
dwarf the combined subscribership of all other MVPDs, accounting for 
91% of the total.
     Vertical Integration--While the number of cable 
programming services has increased over the past year, the percentage 
of services that are vertically integrated with cable operators has 
declined slightly. The Commission's program access and program carriage 
rules, and its decisions applying those rules, seem to have been 
successful in ensuring that competing MVPDs are able to obtain the 
programming services affiliated with cable MSOs.
     Technological Advances--Technological advances are 
occurring that will permit MVPDs to increase the quantity of service 
(i.e., increased number of channels using the same amount of bandwidth 
or spectrum space) and types of offerings (e.g., interactive services). 
On the basis of the information reported, however, it is unclear which 
distributors will benefit the most from these technological advances--
existing cable operators or their existing and potential competitors.

Ordering Clauses

    3. This 1995 Report is issued pursuant to authority contained in 
Sections 4(i), 4(j), 403 and 628(g) of the Communications Act of 1934, 
as amended, 47 U.S.C. Secs. 154(i), 154(j), 403 and 548(g).
    4. It is ordered that the Secretary shall send copies of this 1995 
Report to the appropriate committees and subcommittees of the United 
States House of Representatives and the United States Senate.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-959 Filed 1-23-96; 8:45 am]
BILLING CODE 6712-01-P