March 14, 1994 Erratum to Cable Regulation Impact Survey On February 22, 1994, the Cable Services Bureau released a final report on the cable rate survey (MM Docket No. 92-226). Page 25 of the Cable Regulation Impact Survey Report contained an error. By this erratum, insert the attached page 25 in replacement of the previously released page 25. In the first full paragraph of the original page 25 it was stated that "the total bills for (regulated and non-regulated services) showed an increase for 30.5% of subscribers." This statement is correct for regulated services as reported at page 3 of the survey, and in our original News Release, but the FCC does not have the information as to the exact number of subscribers who received increases for their combined services. Therefore we are amending that statement to read "the total bills for (regulated and unregulated services) showed no decline in many cases." News Media Contact: Hugh Boyle at (202) 416-0802 equipment and installation charges. On the other hand, the data also suggest reasons why not all subscribers received reductions in their bills for regulated services and why the total bills (for regulated and unregulated services) showed no decline in many cases. Basic-only subscribers grew from 3.4% of subscribers to 13.4% of all subscribers as several operators reduced the number of tiers offered by collapsing higher tiers into basic service. The programming component of the charge for basic-only increased 2%. Generally, the increase in the charge for programming was the result of channel lineup reconfigurations that moved programming services and channels from upper tiers to the basic tier and/or that added channels to the basic tier. The rate per channel for basic-only service decreased by 16.4% because the size of the tier increased by nearly 3 channels. The charge for basic-only with equipment decreased 5.8% for subscribers with non- cable ready TVs due to the heavy equipment component of this subscriber profile, but increased 2.5% for basic only subscribers with cable ready TVs. In a significant number of instances, operators eliminated one or more CPS tiers in some or all of their systems. The channels on the eliminated tiers were moved to the basic tier, to other CPS tiers, or to a la carte, or otherwise were eliminated from the system offerings. The movement of channels from CPS tiers to the basic tier contributed to the overall increase in charges for basic services. In several instances, however, increases in the rate per channel allowed under the FCC's tier neutral regulations caused the basic service tier charge to increase. Generally, operators adopted tiering strategies which seem to contribute substantially to sustaining the charges for many subscriber profiles at levels fairly comparable to pre-regulation levels. The movement of channels from regulated to unregulated service, if it results in a net decrease in the number of regulated channels, will increase the permitted benchmark rate per channel to a level above what it otherwise would have been.