Key Issues

On behalf of WCCA's memember companies which employ more than 4,200 cable employees in this state, WCCA urges members of the legislature to not support LRB 0947/7, the Disenfranchising Wisconsin Jobs Act

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Why? This bill draft creates significant new regulatory costs and burdens on Wisconsin’s video providers as well as allows for new fees (up to 1% of a cable operator’s gross revenue) to be charged to our state’s consumers who choose to purchase their video service from a video provider with employees and facilities in the state. The bill draft creates no such requirement on out-of-state satellite video service providers.

As a result, this legislation would provide further regulatory and price advantages for satellite video providers to the competitive disadvantage of facilities based providers, whether they are traditional cable providers or new entrants. LRB 0945/7 would regulate only facilities based video providers at the Wisconsin Public Service Commission. It would also have state law mandating the carriage of additional channels and the placement of those channels in the line-up. These obligations would not apply to satellite competitors.

Wisconsin’s has a very competitive market for video services. Each day, cable providers are competing for customers on the basis of price, content, quality and service. In addition to cable, Wisconsin consumers can choose between at least two satellite video providers. Additionally since the passage of 2007 WI ACT 42 thousands of more customers can choose a new facilities based competitive provider.

In fact, according to the most recent data available, in quarter three of 2007, there were 629,067 satellite households in WI out of 2,193,960 TV households in the state, or 29% of all homes with television. Of those households who pay for video service, satellite has roughly 34% of the market in Wisconsin.

Given the current economic climate in Wisconsin, it is surely not the time to increase fees on cable customers or to create competitive advantages for companies who create few jobs and do not locate facilities in the state.

If you have any questions, please do not hesitate to contact the WCCA or your local cable operator.