A PYMNTS Company

US: Do cable bundles cost consumers $34B in extra fees?

By  |  May 23, 2013
US: Do cable bundles cost consumers $34B in extra fees?

What, exactly, is the effect of the highly debated practice of cable bundling on consumers? According to one US law professor, cable customers are overpaying $34 billion a year due to channel tying and bundling. Professor Warren Grimes, from Southwestern Law School, has released a new article in which he calculates the overage fees for unwatched channels consumers are forced to buy as part of a package. The paper, “The Cable Television Case: A Giant Step Toward Irrelevancy?”, comes in the wake of a failed class action filed in 2007 against television programmers; Grimes was part of the plaintiffs’ legal counsel during his time as litigator at O’Melveny & Myers. The professor reaches his $34 billion number based on cable practices in Canada, where, according to the author, consumers pay about $342 less per year for the same television they would receive in the US.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Thomson Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.