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CNN Live At Daybreak
Rising Cable Rates
Aired July 09, 2003 - 06:46 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well let's get a look at our business news, maybe there's some hope there. Is your soaring TV cable bill making you angry? Well you're not alone.
Let's go to Carrie Lee at the Nasdaq market site to find out who has put the cable industry on his radar -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Thank you, Fredricka.
The bottom line here, cable rates have really far outpaced inflation. Television cable rates have risen 8.2 percent to an average $40 a month, according to the Federal Trade Commission, and this is for the period of 12 months ending in July of last year. Now by comparison, the consumer price index has risen just 1.5 percent. Now true, consumers are getting more options, about 63 channels on average now from about 59.
The cable industry says they need these price hikes to cover systems upgrades, but the rising costs have angered Senator John McCain who is also Chairman of the Senate Commerce Committee. He says the price hike defies logic and shows that -- quote -- "The cable industry has risen to new heights in their apparent willingness and ability to gouge the American consumer." So Senator McCain says his committee is going to continue to focus on this issue in the coming months. We'll see if they are able to do anything about it -- Fredricka.
WHITFIELD: All right. Well about the futures, any hope there?
LEE: Yes, things look a little bit weak. The Dow did end in positive territory by just six points late in the day yesterday. The Nasdaq, though, is continuing its rally, up about 1.5 percent or 25 points. And things look a little weak. Not too unusual to see a pullback after nice gains that we saw yesterday.
One stock to watch this morning, Alcoa, the aluminum giant, the first Dow component to report profits last night did miss the estimate -- I'm sorry, they actually beat the Wall Street estimate but came in a little bit light from the year ago period. And Alcoa was up about 4 percent in after-hours trading, so that's certainly a stock to keep in focus this morning -- Fredricka.
WHITFIELD: All right. Carrie Lee, thanks very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired July 9, 2003 - 06:46 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well let's get a look at our business news, maybe there's some hope there. Is your soaring TV cable bill making you angry? Well you're not alone.
Let's go to Carrie Lee at the Nasdaq market site to find out who has put the cable industry on his radar -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Thank you, Fredricka.
The bottom line here, cable rates have really far outpaced inflation. Television cable rates have risen 8.2 percent to an average $40 a month, according to the Federal Trade Commission, and this is for the period of 12 months ending in July of last year. Now by comparison, the consumer price index has risen just 1.5 percent. Now true, consumers are getting more options, about 63 channels on average now from about 59.
The cable industry says they need these price hikes to cover systems upgrades, but the rising costs have angered Senator John McCain who is also Chairman of the Senate Commerce Committee. He says the price hike defies logic and shows that -- quote -- "The cable industry has risen to new heights in their apparent willingness and ability to gouge the American consumer." So Senator McCain says his committee is going to continue to focus on this issue in the coming months. We'll see if they are able to do anything about it -- Fredricka.
WHITFIELD: All right. Well about the futures, any hope there?
LEE: Yes, things look a little bit weak. The Dow did end in positive territory by just six points late in the day yesterday. The Nasdaq, though, is continuing its rally, up about 1.5 percent or 25 points. And things look a little weak. Not too unusual to see a pullback after nice gains that we saw yesterday.
One stock to watch this morning, Alcoa, the aluminum giant, the first Dow component to report profits last night did miss the estimate -- I'm sorry, they actually beat the Wall Street estimate but came in a little bit light from the year ago period. And Alcoa was up about 4 percent in after-hours trading, so that's certainly a stock to keep in focus this morning -- Fredricka.
WHITFIELD: All right. Carrie Lee, thanks very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
