Latest Consumer Squeeze: Cable TV Prices

FCC Concerned About Rising Monthly Charges, Even As Service Declines

(AP)  The Federal Communications Commission expressed concern as several cable companies discussed plans to raise their rates for next year, including Cablevision Systems Corp., which on Wednesday announced an average hike for cable TV service of 3.5 percent.

Cablevision noted that the price increase on video services falls below inflation and said it's also building a Wi-Fi network that its Internet subscribers will be able to use for free.

An FCC spokeswoman said the trend could hurt already-battered consumers.

"Over the last decade, average cable rates have more than doubled. And now cable companies are charging consumers more but consumers are receiving less," said spokeswoman Mary Diamond, referring to cable moving some analog channels to more expensive digital-only tiers.

"This is an unfortunate trend for families facing increasingly difficult economic times," Diamond said.

Her comments echoed a letter of complaint that Consumers Union, the nonprofit publisher of Consumer Reports magazine, sent federal lawmakers on Wednesday.

Bethpage, N.Y.-based Cablevision prices for phone and Internet services won't change when the video rates rise. The company, which serves 4.7 million people in the New York metropolitan area, also said customers who buy three services packaged in a discounted bundle will not see a rate hike.

A candid rate increase announcement like the one Cablevision made Wednesday is unusual in the pay-TV industry, where most companies are reluctant to talk publicly about the details of price hikes.

Philadelphia-based Comcast Corp., the nation's largest cable company, plans to raise rates by an average 3.7 percent on customers who buy multiple services in a discounted bundle.

A corporate spokeswoman said she couldn't say what specific increase customers who subscribe only to cable TV will see because those rates are set on a regional level. But the company didn't dispute newspaper reports that Comcast told customers they would see increases around 6 percent.

Similarly, Time Warner Cable Inc. acknowledged it will raise rates next year but said specifics weren't available because they are determined on the regional level.

The Dayton Daily News in Ohio said last week that Time Warner Cable will raise rates by 10 to 12 percent for basic and expanded basic cable for customers in the Dayton area starting in November. Prices for bundles of services won't change.

A spokesman for Time Warner Cable said video service price increases don't show what most customers experience because 60 percent receive discounted bundles of services.

The New York-based company also said customers can lock their subscription price for two years through its Price Lock Guarantee program.

Cox Communications Inc., based in Atlanta, also said it plans to raise rates for 2009 but needs time to calculate the average increase.

New York-based Verizon Communications Inc. said it already raised rates by 12 percent in February on its FiOS TV Premier tier, the company's most popular video plan. It will revisit rates again in early 2009.

DirecTV Group Inc. in El Segundo, Calif. said it's too early to talk about 2009 rates.

Dish Network Corp., in Englewood, Colo., said it had no announcement to make. AT&T Inc., based in Dallas, declined to comment.

Charter Communications Inc. in St. Louis didn't immediately respond to questions about price hikes.

[luvcomments]

I am so utterly sick of American greed. About one-third of channels on Time Warner Basic are remotely worth watching - the rest are cooking or infomercials. Try living on soc sec and being ripped off everywhere you turn - greed isn''t confined to Wall Street and record oil company profits and credit card companies; it''s literally permeated every facet of necessities in American life. Our obsession with greed and ego will be this country''s undoing.

[timetrips1]

I agree, cable has become a big rip off. I watch less than 10 channels (abc, nbc, cbs, fox, upn, sci-fi, discovery and history), yet I have to pay for the 60 or 70 channels they want to stuff down my throat. And what''s worse is I have to subscribe to a more expensive package (add $20.00 per month) just to get ONE channel (Sci-Fi). And if I want HD, OMG the price skyrockets. I have an HD set and refuse to pay for HD service. I''ll stick with watching regular DVD''s on a player that "imulates" HD (which is nice enough). And with the economy going the way it is I''m seriously considering going back to FREE tv and put up an antena.

[jdclueless31088]

Cox Communication said it will raise cable cost in 2009 apparently they haven''t communicated with themselves as they have all ready raised the cable bill and internet and phone in Sep 2008. You''re suppose to get a break when you have all three but, that''s only for 3 months...I pay an average of 150.00 for all three. I have no choice, can''t get Directv or Dish because of the area I''m in...so again the cable company can do as they please and we have no choice.

[bckrd1]

if you can receive over the air and you have an HDTV it is an HDTV picture. I don''t have cable or satellite
and the picture is fantastic. I don''t like to be at a companies mercy either

[robinscat48]

Cable companies have been robbing their customers blind for many years. We get increasing prices and decreasing channels for more money. And it is usually the only provider for the vast majority of the area. We also get blocked stations because someone is playing the program in another area. cox cable is my provider and they are in Atlanta but I am not allowed to watch anything on the Atlanta stations unless it is news. Otherwise it''s blocked!! Never could figure that out. I am disgusted with the whole lot of them.

[cheetah-man7]

In August my cable company, COMCAST, was calling to schedule an appointment to install the new digital cable box that will be needed for next February''s transition. I asked why they are doing this so early and I was told that the demand would be too great in February. I immediately said that the reason is not about the hordes of calls, but that Comcast wants to start charging me NOW for the box rental and to gain as much money as possible BEFORE February. The guy got very flustered on the phone and simply hung up on me. I am seriously asking myself if I really want cable anymore. I mostly watch DVD''s and the news channels are always full of bad news... why should I want to pay for more and more bad news... Isn''t the real bad news the fact that the Cable companies are making money hand over fist from me and everyone else? The Cable industry needs to be regulated!

[brianbwb-2009]

I am old enough to remember when cable TV was a new thing, the hype story was that for a subscription fee, you wouldn''t have to endure commercials.

Well now they absorb the air channels and the analog channels, and now you not only pay, but you have to watch the commercials.

Class action, anyone?

[stevador39]

They have invented books. They are informative, entertaining and free to borrow from a local library.

[rbburnerjr]

I just received a notice from Charter Cable that they are raising the cost of my cable package 11% effective Dec 1st. I just got off the telephone with Dish Network and starting Saturday I will get even more channels for 30 less a month. No more Charter-No more slow poor service either.

[frankistage]

The cable companies where set up by the Republicans years ago when they were provided with a virtual pathway to monopolies in every major market. And when you have a monopoly you have price control.

[u-r-right]

If all was fair, we would be able to choose which channels we want and only pay for those channels. Out of 150 channels I get, I bet I only watch 5 or 6 repeatedly. Most nights, I don''t watch anything at all. Thanks! I think I found another area I can cut $60 of my monthly expenses without missing it!

[dredre2k]

Good to know that the FCC is cracking down, FINALLY. Cox will aslo be raising its prices, and I will be cutting my service as they up the bill. Enough is never enough for these companies, the price of living has just skyrocketed!

[wl7bzh]

Are they still showing "classic movies". You know the ones-they''re twenty to thirty years and are usually supported by ads for vacuum cleaner, exercise equipment, diets and skankkk narrated male enhancement products.

Gosh, who would want to see Road House or Joe Dirt again?

[payasyougo]

It is real simple. If you don''t like the price, drop your subscription. If it wasn''t worth it to you, you wouldn''t subscribe to it.

If it is another item in life you can''t live without, quit whining. When the CEO of each cable company takes home millions on salary, stock and bonus you can whine or you can realize it is your doing that compensated them.

There are actually a lot of households that have decided it is not worth it, don''t have it and actually make it through each day reading or spending time with their children and grandchildren.