Satellite, Cable TV Operators Raising Prices
Cord Cutting is very much a thing and more than 2 million people dropped cable and satellite TV over the last year or so. With that background comes news that Comcast, Dish and DirecTV are raising prices.
The Denver Post reports that purveyors of traditional pay TV, who’ve increased their prices by more than 100 percent over the last 10 years, are once again raising prices.
“Each year, television networks continue to increase the programming fees they charge DirecTV for the right to broadcast their movies, shows and sporting events,” said DirecTV rep Robert Mercer.
“[We] periodically need to adjust prices due to increases we incur in programming, business costs and technology enhancements,” added Cindy Parsons, Comcast, which has increased prices twice over the last year — 3.3 percent in January and then again by 2.5 percent in October.
Comcast: New $1.50 fee starts in January
Dish: $3 to $5 increase in programming packages starting in February
DirecTV: 3.7 percent increase starting in February
According to SNL Kagan, a heavily quoted media researcher, these increases are being driven by rising retransmission fees, which amounted $3.3 billion in 2013 and, this is the punchline, are expected to more than double to $7.15 billion by 2018.
Of course, whenever cable and satellite operators pay more, those costs and more are passed along to consumers. Again, cable TV pricing has increased by more than 100 percent over the last 10 years.
With millions already cord cutting and the legions of young adults who’ve never paid for cable or satellite, there is an obvious dissonance here — a shrinking customer base and rising prices.
Already cut the cord? Thinking hard about how much you could save? Sound off with your frustrations and triumphs in the comments below…