I started thinking about this and decided this is a pretty brilliant business decision on the AR side. Instead of using current employees to collect bad debts or even hiring a 3rd party to do it, make anyone who lived in the house and used the cable make the person on the account pay the bill before allowing service.
It probably started when one person would get the account started, never pay the bill, then it would get cut off. Then the wife puts it under her name, etc..... Then maybe cousin Bill, etc.... In the end, service were given an no one paid. Instead of targeting the individual they began targeting the residence and all who ever put it as their mailing address during that period of time.
They aren't doing thing illegal by saying no to a potential customer by denying them on the protected classes (race, gender, religion, etc...). They just say you lived there, you used our service, no one has paid for it so if you want your own service then you get the bill paid. Otherwise, no.
Sure, the next thing is "well, I'll get Dish/Direct/etc...". True but then the problem might start all over again. And that's if they don't run a credit check and find anything.
I kinda see why they do it. Sucks for the consumer though.