Cablevision Users Get Payouts After Set Top Box Lawsuit Settled

Late last year Cablevision settled a lawsuit accusing the company of antitrust violations for denying access to third-party boxes at competitive prices, and now the resulting settlement money is now making its way into consumers' hands. As is usually the case the resulting settlement isn't much; a settlement website indicates that current customers can get credits for services ranging between $50-$140 in value or a one-time bill credit of $20-40. Past Cablevision customers can get a one-time cash payment of between $20 $40.

The settlement was reached afterof litigation.

According to an update posted to the website, these settlements "will be disbursed beginning in February, 2017."

The payout is miniscule compared to the harm caused by the cable industry's anti-competitive control of the set top market. A 2016 survey by Senators Ed Markey and Richard Blumenthal found that set top box competition is virtually nonexistent, with 99% of cable customers renting a cable box, spending up to $231 per year on set-top rental fees. Cox has faced similar lawsuits with better luck.

The FCC last year tried to take aim at this lack of competition in the set top box space by crafting new rules that would have forced cable companies to offer their current programming lineup over third party hardware -- without the use of a CableCARD. That plan was later revised to simply let companies provide this content via app

Fearing a loss of a captive $21 billion annually in rental fee revenues, the cable responded with a nationwide PR assault. This has included editorials that claim the FCC's plan would "weaken content diversity and security, undermine important consumer protections like privacy, and stall the creative and technical innovation that is driving positive changes in today's TV marketplace."

The effort was incredibly effective, resulting in even one of the original FCC commissioners that voted to approve the plan (Jessica Rosenworcel) backing away from it. And with new FCC boss and former Verizon lawyer Ajit Pai being a close ally of the cable and broadband sector, efforts are already underway to kill off the FCC effort for good.

As such, the class action settlement is the best many consumers can expect as consumers wait for reform. Cablevision customers interested in getting their share of the settlement money should head here and follow the instructions.