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story category A Milder Cable Rate Hike Season Is Coming
The usual price hikes should be 50% lower, says economist
08:38AM Friday Aug 21 2009 by Karl Bode
tags: prices · competition · business · cable · stats · consumers
Remember how the entrance of the phone companies into the TV business was supposed to lower TV prices? Well, that didn't happen. But at least one economist seems to think that this year's cable TV rate hike season will be a little less painful than in years' past. Gregory Crawford, former chief economist at the FCC turned economics professor, believes that this fall and next springs TV rate hikes will be 50% of what they were in year's past. While hikes are partially driven by higher programming costs, cable operators may have to start eating some of these costs to remain competitive (surely an executive or two could take a pay cut?). Of course cable customers who've been hearing this for a decade will wisely want to see it to believe it.

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Forums » A Milder Cable Rate Hike Season Is Coming
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Mactron
el camino Real
Premium
join:2001-12-16
CM94sv

Ya Right

"Of course cable customers who've been hearing this for a decade will wisely want to see it to believe it."

That just about sums it up.
--
If only the Verizon CSRs worked this well.

baineschile
2600
Premium
join:2008-05-10
Sterling Heights, MI

Re: Ya Right

Rates go up for all TV providers, because the network content providers rates go up. Its not as complicated as most people think.

TKJunkMail
Enjoy the sun
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join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: Ya Right

said by baineschile See Profile :

Rates go up for all TV providers, because the network content providers rates go up. Its not as complicated as most people think.
That is the main truth of rate increases ignored by many.
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SLD
Premium
join:2002-04-17
·Comcast

Re: Ya Right

What is ignored by your statement is that when multiple networks compete in an area, they have a higher incentive to fight rate increases by their content providers.
Since many networks enjoy gov't sponsored monopolies, they have little incentive to pressure content providers to keep prices low, they just pass it on to their customers.
beaups

join:2003-08-11
Hilliard, OH

Re: Ya Right

Unfortunately the carrier competition can cause the exact opposite effect as what you describe. Let's use the big10 network in central ohio.

Big10 comes in and wants an unreasonable amount of money and requires the cable company to put it on the basic tier so everyone pays. IIRC it was about $1.10/mo/subscriber.

Now if there was only one provider here they'd have a ton of leverage to fight this. But we have WOW and TW. TW fights it, and no surprise WOW picks up the channel right away and uses it to snag customers with commercials "IF you'd like to see the next OSU game" switch to WOW today!

So TW caves in ad now we all pay for this crap channel.

SLD
Premium
join:2002-04-17

1 edit

Re: Ya Right

Isn't this more of a bundling vs. a la carte than cost of services? Sure, if you consider purchasing unwanted content to be a cost, but compared to rate-hikes, I'm not sure this is the same arguement.

imrf
Premium
join:2002-06-06
Utica, MI
·WOW Internet and C..

said by SLD See Profile :

What is ignored by your statement is that when multiple networks compete in an area,
I disagree. I have 3 cable companies in my backyard plus AT&T U-Verse, DirecTV and Dish Network all as options. All 5 raised the rates last year, and the year before all 4 raised the rates(the year before U-Verse was non-existent here).

Since many networks enjoy gov't sponsored monopolies,
Where would those be? There hasn't been anything stopping another cable company to come through in any area for well over a decade. The problem is, is that no company wants to overlap an already served area. It costs way to much to build a network. It's a loosing battle.
pandora
Premium
join:2001-06-01
Outland
·ooma
·Future Nine Corpor..
·Comcast

Re: Ya Right

You make an excellent point. Almost anywhere in the U.S. a consumer can subscribe to Dish or DirecTV. There is no cable monopoly for programming IMO.

Currently telco's are competing with cable for both cable content and internet access. Additionally some are finding wireless acceptable for internet (though these 5GB wireless caps should be raised IMO).

In addition to traditional offers, there is VOIP provided by many companies in many pricing structures. There is also IP TV via Hulu, Youtube, even Netflix. Today even many cell phones can play TV programs.

Overall, we seem to have more competition than ever for phone, internet and cable program services.
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use."
travelguy

join:1999-09-03
Santa Fe, NM
Rates go up because people will pay. Content costs go up because the providers see that people are willing to pay and want their share.

It isn't complicated.
axus

join:2001-06-18
Washington, DC

Re: Ya Right

heheh, I'm not willing to pay, but plenty of people are.

cablenomore

@sbcglobal.net

I've not had a rate increase since last year. In January I cancelled cable. Haven't missed it one bit.

I suggest others do the same. Your life isn't enhanced by television, and it certainly isn't worth $100 a month to watch it. There are a lot more alternatives out there than you think.

N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
·Verizon FIOS
·Verizon Online DSL

Competition DOES keep your bill down, if you play one against the other.

Both operators in my area offer competing deals. Comcast offers a triple play package for $99, with no price hike the first year. Second year regular pricing kicks in. Problem is, you have to sign a 2 year commitment.

Verizon offers a triple play package with no price increases for 2 years, with a 1 year commitment.

I took Verizon's package. Two years from now, you bet your aers I'll be telling them I leaving for Comcast's deal, and you know they'll be giving me a discount to stay. All you have to do with Verizon is say "Comcast" to them, and they fold like a greeting card.

Problem is, in "polite society" it's not accepted practice to barter with people. In other parts of the world, the price tag is often nothing more than a starting off point for negotiations.

Me, I hit 'em in the chops every time, and just about every time I get some sort of discount.
--
Petty people are disproportionably corrupted by petty power…
PittsPgh

join:2003-08-21
Pittsburgh, PA

Re: Ya Right

said by N3OGH See Profile :

Competition DOES keep your bill down, if you play one against the other.

Both operators in my area offer competing deals. Comcast offers a triple play package for $99, with no price hike the first year. Second year regular pricing kicks in. Problem is, you have to sign a 2 year commitment.

Verizon offers a triple play package with no price increases for 2 years, with a 1 year commitment.

I took Verizon's package. Two years from now, you bet your aers I'll be telling them I leaving for Comcast's deal, and you know they'll be giving me a discount to stay. All you have to do with Verizon is say "Comcast" to them, and they fold like a greeting card.

Problem is, in "polite society" it's not accepted practice to barter with people. In other parts of the world, the price tag is often nothing more than a starting off point for negotiations.

Me, I hit 'em in the chops every time, and just about every time I get some sort of discount.
That only works IF you have Competition!

Paul
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ

sometimes rates go up because of bullshit like niche stations getting put on the normal tiers. ESPN is what? 5 dollars per sub for the carrier to have. but to get any other disney corp owned channels they must carry espn in their normal tiers.

also greed is endless, NFL network sued comcast for keeping it in the sports tier.
--
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Bobcat
Premium
join:2001-02-04
Bedminster, NJ

100% rate decrease

My cable rate is going down 100% in a couple weeks. That's because I'll be canceling Cablevision's overpriced cable service.

jchambers28

join:2007-05-12
Alma, AR

Re: 100% rate decrease

i agree with you there I got rid of cox and went to dish for about 40 a month the best move i have made.

TKJunkMail
Enjoy the sun
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join:2002-03-03
Avalon, NJ
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said by Bobcat See Profile :

My cable rate is going down 100% in a couple weeks. That's because I'll be canceling Cablevision's overpriced cable service.
And replacing it with what?
--
My BLOG .. .. Internet News .. .. My Web Page
WayneHolmes

join:2006-12-23
Mountlake Terrace, WA

Re: 100% rate decrease

said by TKJunkMail See Profile :

said by Bobcat See Profile :

My cable rate is going down 100% in a couple weeks. That's because I'll be canceling Cablevision's overpriced cable service.
And replacing it with what?
In my case I replaced cable TV with spending more time with friends & family, reading, and enjoying some hobbies.

Wayne

Bobcat
Premium
join:2001-02-04
Bedminster, NJ
·Verizon Online DSL

said by TKJunkMail See Profile :

said by Bobcat See Profile :

My cable rate is going down 100% in a couple weeks. That's because I'll be canceling Cablevision's overpriced cable service.
And replacing it with what?
The "OFF" button.
tmc8080

join:2004-04-24
Floral Park, NY

Re: 100% rate decrease

said by Bobcat See Profile :

said by TKJunkMail See Profile :

said by Bobcat See Profile :

My cable rate is going down 100% in a couple weeks. That's because I'll be canceling Cablevision's overpriced cable service.
And replacing it with what?
The "OFF" button.
That's probably not STRICTLY the case if at least part of the family is tech savvy.. there's SOMEBODY downloading content probably for FREE over the internet.. that's one HUGE factor in stalling deployment of DOCSIS 3.0 in Verizon FIOS areas. At some point, the [CABLE-TV] industry will have see that they are on a collision course with the so-called FREE PIRACY MAYHEM of content ditribution over the internet VERSUS semi annual price increases for Cable-TV content channels. At this point, the idea of A-LA-CARTE idea might have to be nuanced further.. instead of paying for CHANNELS.. you may just want to download/stream blocks of content for a small fee to stay on the "LEGAL" side of things this way you can place a "VALUE" on the content itself.. and good luck selling it with commercials/informercials. Cable-TV as it is sold today is dying a slow death, with more and more consumers saying the heck with it.. and the tipping point will come--maybe not today, maybe not tomorrow.. but your children (as a whole) are HOOKED on FREE to dirt cheap cost, and that.. cable-tv isn't with all it's set-top box rentals and price gouging feature sets & widgets/interactivity.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME


1 edit
If mine goes up, I'll replace with HD OTA.
Last year, I paid $90/month (~$100 after fees) for cable/voice/internet.
This year, I'm paying $100/month ($110 after fees) for the same thing.

Sad part is that programming quality has gone down, yet rates keep going up.

tubbynet
reminds me of the danse russe
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Re: 100% rate decrease

said by en102 See Profile :

If mine goes up, I'll replace with HD OTA.
Last year, I paid $90/month (~$100 after fees) for cable/voice/internet.
This year, I'm paying $100/month ($110 after fees) for the same thing.

Sad part is that programming quality has gone down, yet rates keep going up.
i got tired of this as well. used to have a cox triple play - was costing me $150/month with premier internet, one hd/dvr, and basic digital phone. after about a year, i got tired of paying for the crap i wasn't watching or using. i cut out phone and cable, leaving the premier internet. i switched to ota hd for locals. i subscribed to netflix and purchased a roku box. what i can't watch between those two is watched online, either through podcasts or through the website itself (daily show, etc). as the icing on the cake, i went with an indie voip provider for landline.

my bill went from $150/month + tax to around $80 (if you include my estimate at $10/month for my voip). my overall satisfaction is much higher and i read a lot more and spend more quality time with the family too. its a win.

q.
--
"...if I in my north room dance naked, grotesquely before my mirror waving my shirt round my head and singing softly to myself..."
rid0617

join:2003-07-20
Greer, SC
Nothing. I'm from the generation that never paid for TV, got sucked into it and with over the air HDTV no longer pay for it. Got tired of paying $50 plus per month for crap programming and 10 minutes of commercials every 30 minutes

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
care to share what alternative you will be using? OTR? hulu? tivo+netflix streaming? roku? newsgroups?

SLD
Premium
join:2002-04-17

Re: 100% rate decrease

It is funny that the assumption is that it *must* be replaced.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: 100% rate decrease

Fair enough. However, the odds are it will be replaced with something. There are very few people that have the will power to go without tv. I suppose he can just surf the net or start gaming to pass the time.

N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
·Verizon FIOS
·Verizon Online DSL

Re: 100% rate decrease


Heeer's Homer!
Burns: Yes, by cutting off cable TV and the beer supply, I can ensure an honest winter's work out of those low-lifes.

Smithers: Sir, did you ever stop to think that maybe it was doing this that caused the previous caretakers to go insane and murder their families?

Burns: Hmm... perhaps. Tell you what: we come back and everyone's slaughtered, I owe you a Coke.
--
Petty people are disproportionably corrupted by petty power…

BF69

join:2004-07-28
Camden, TN

said by morbo See Profile :

Fair enough. However, the odds are it will be replaced with something. There are very few people that have the will power to go without tv. I suppose he can just surf the net or start gaming to pass the time.
OTA and Hulu( or Hulu type sites ) can make up most of what you get on cable.

Eat Me

join:2002-09-25
Sussex, NJ
·PenTeleData
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Re: 100% rate decrease

said by BF69 See Profile :

said by morbo See Profile :

Fair enough. However, the odds are it will be replaced with something. There are very few people that have the will power to go without tv. I suppose he can just surf the net or start gaming to pass the time.
OTA and Hulu( or Hulu type sites ) can make up most of what you get on cable.
Until Hulu is no longer free (which has been indicated can happen.)
JSRoman
Premium
join:2005-03-10
Callahan, FL


2 edits

Couple of points

1-Executive pay has very little to do with rate hikes going up or down

2- Check arround, some cable rates just went up in last couple of months.

3- If rates haven't gone up, you are seeing enforcement of fees associated with billing, ie..nsf fees,paying via a live person fees,upgrade/downgrade fees and truckroll fees. All are becoming harder to get out of paying those.

Just like local governments that don't like raising taxes and instead raise fees on all types of services , companies are doing pretty much the same thing.
--
»www.seabee.navy.mil

NYS

@buffalo.edu

Re: Couple of points

said by JSRoman See Profile :

Just like local governments that don't like raising taxes and instead raise fees on all types of services , companies are doing pretty much the same thing.
Come to New York State. All governments here like to both raise taxes and fees.

castsucks

@sbcglobal.net
they jack the rate up high box rent fees and that free dta will not be free in a year also we plan to make clear qam OTA + psa only.

cableties
Premium
join:2005-01-27

Hi, I'm Billy Mays, I'm Dead, but you still Pay!

LOL!

Oh, I forsee less TV for me in the future...but more ads, longer and in 3D!
--
Splat
ak3883

join:2005-08-20
Bensalem, PA

Wanna bet?

N3OGH, great quote:)

Here with Comcast, I bet we are gonna pay this year. NBA,NHL,NFL networks all moved to a lower digital tier, we got ESPNU as well... i'm sure it will go up close to 10% again.

Yes I have a choice, and I downgraded to basic cable for the summertime, just don't watch enough of it, saved a couple hundred bucks, and am eligible for a new promo once football season revs up in a few weeks!
MySay

join:2008-04-08
Mansfield, TX

Solution

WDTV + 1TB Drive + HD Movie Torrents = My current solution!

I won't pay to watch commercials, ever again!
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Solution

.... so... steal it.. good answer.
MySay

join:2008-04-08
Mansfield, TX

Re: Solution

said by fiberguy See Profile :

.... so... steal it.. good answer.
"My views are my own." QFT! At least mine are commercial free.
Forums » A Milder Cable Rate Hike Season Is Coming


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