We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Federal Communications Commission (FCC) has set its annual regulatory fees at $384 million for 2016, an increase of 11–13% on an average from the year-ago figure. The fee hike will cover the regulatory body’s one-time costs of $44 million for reorganizing and reducing office space. Moreover, the FCC has raised fees for satellite TV providers like AT&T Inc. (T - Free Report) , DIRECTV and Dish Network Corp. that will now pay 27 cents per subscriber – more than double the fees of 12 cents charged last year. However, the charges are lower than the rate of $1 per subscriber paid by cable TV and IPTV providers like Comcast Corporation (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) .
Industry Response
The American Cable Association (ACA) praises the fee increase for satellite TV operators as it is deemed to bridge the yawning gap between cable operators and satellite TV operators. However, Dish expressed discontentment, citing that consumers will ultimately bear the brunt of the raised fees.
The Bottom Line
The pay-TV industry, comprising cable TV and satellite TV players, has been witnessing subscriber loss owing to the growing popularity of over the top (OTT) video streaming service providers like Netflix Inc. (NFLX - Free Report) and Hulu.com. Thus, many of these pay-TV companies are trying to expand their IPTV presence to check churn. However, unlike IPTV, these OTT services are not regulated by the FCC and hence this asymmetric regulation may hurt the pay-TV industry at large. This has led industry lobbyists call for regulation of such OTT services. However, no progress on this aspect has been made till now.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
FCC's Annual Fee Hike Irks Satellite TV Providers
The Federal Communications Commission (FCC) has set its annual regulatory fees at $384 million for 2016, an increase of 11–13% on an average from the year-ago figure. The fee hike will cover the regulatory body’s one-time costs of $44 million for reorganizing and reducing office space. Moreover, the FCC has raised fees for satellite TV providers like AT&T Inc. (T - Free Report) , DIRECTV and Dish Network Corp. that will now pay 27 cents per subscriber – more than double the fees of 12 cents charged last year. However, the charges are lower than the rate of $1 per subscriber paid by cable TV and IPTV providers like Comcast Corporation (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) .
Industry Response
The American Cable Association (ACA) praises the fee increase for satellite TV operators as it is deemed to bridge the yawning gap between cable operators and satellite TV operators. However, Dish expressed discontentment, citing that consumers will ultimately bear the brunt of the raised fees.
The Bottom Line
The pay-TV industry, comprising cable TV and satellite TV players, has been witnessing subscriber loss owing to the growing popularity of over the top (OTT) video streaming service providers like Netflix Inc. (NFLX - Free Report) and Hulu.com. Thus, many of these pay-TV companies are trying to expand their IPTV presence to check churn. However, unlike IPTV, these OTT services are not regulated by the FCC and hence this asymmetric regulation may hurt the pay-TV industry at large. This has led industry lobbyists call for regulation of such OTT services. However, no progress on this aspect has been made till now.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>