Mediacom customers to see slight cost increase

Posted January 7, 2015 at 3:16 pm

Customers who subscribe to cable television service in Albany and Clinton County will see another rate adjustment that will become effective this month. However, the increase will be minimal to most subscribers and only slightly higher for those who subscribe to the premium HBO channel.

Mediacom Cable, the city and county’s cable TV provider, announced the slight increase in a letter to local officials dated December 12, 2014 from Kate Hotle, Manager, Government Relations with the cable company. The correspondence blamed the increase in rates on higher programming costs for networks and sports television outlets.

The increase will be as follows:

* Local Broadcast Station Surcharge, from $2.23 current to $3.44 for an increase of $1.21 per month.

* Regional Sports Surcharge from $1.87 current to $2.07, for .20 cents additional.

* HBO from $17.95 to $18.95.

The increase for customers not receiving HBO will be $1.41 per month to their bills and $2.41 if they receive the HBO channel.

The letter noted the rate change would take effect on or about January 15, 2015 and reads as follows:

“The decision to make price adjustments is always a difficult one. We are very reluctant to raise video prices because, when we do, we lose subscribers. However, cable and satellite companies are constantly being pressured by the programmers we buy from to pay more for the channels we carry.

The fees we pay to retransmit local broadcast stations like ABC, CBS, FOX, and NBC are by far our fastest growing programming cost component. As Federal Communications Chairman, Tim Wheeler, noted, the cost of carrying local broadcasters “has skyrocketed from $28 million in 2005 to $2.4 billion in 2012, a nearly 8,600 percent increase in seven years.” A Wells Fargo analyst recently predicted this number could jump five fold to $12 billion annually by 2019.

The problems with sports programming are equally as alarming. One look at the skyrocketing rights fees announced with recent deals and it is easy to see that the marketplace for live televised sports is out of control. Broadcast networks and national and regional sports networks are shelling out billions of dollars for the rights to carry pro sports like the NFL, NBA, MLB, and NHL, Olympic Games, World Cup and NCAA football and basketball games. Unrestrained spending has become the hallmark of the sports programming business, and the American consumer, whether a sports fan or not, is left to pay the price.

In an effort to bring more transparency to the unjustified fee increases being taken by the owners of broadcast and sports television channels, Mediacom previously introduced a Local Broadcast Surcharge and a Regional Sports Surcharge. By identifying the cumulative fee increase being taken by these channel owners, we hope to draw the attention of consumers and their elected representatives to this rapidly escalating problem.

Greater transparency is only part of the solution, though. Recognizing that many consumers are frustrated by the current state of affairs in the video marketplace, Mediacom filed a petition on July 21, 2014, asking the Federal Communications Commission to adopt new rules that would allow expensive channels to be sold a la carte, create options to purchase channels on an unbundled basis, ensure consumers have access to free online video content and prevent unjustified wholesale price discrimination (see http://mediacomcable.com/site/about_news_27_07_2014.html). We also maintain a website, www.mediacomonyourside.com, to help educate consumers about programming cost issues.

Despite the business challenges we face, Mediacom appreciates the opportunity to serve your community’s telecommunications needs. If you may have any questions, please contact me directly (Kate Hotle) at (309) 743-4152 or khotle@mediacommc.com.”