Mediacom letter to Huff notes that rates are going up again

Posted August 22, 2012 at 7:27 pm

Although it hasn’t been many months back since some cable television rates were adjusted upward, some residents–depending on the cable packages they have–will see another adjustment in their rates beginning early next month.

Mediacom informed Clinton County Judge/Executive Lyle Huff, in a letter dated July 25, of the upcoming changes in rates and blamed programmers who supply programs to cable and satellite outlets, for the increase.

The notification letter to the judge/executive said the purpose of the letter was “to inform you that, on or about September 1, 2012, Medicacom will be implementing the following video rate adjustments,” and listed the Family Cable rate seeing a $2 per month increase, from $67.95 to $69.95 per month.

Additionally, all Star premium movie packages will increase by $3 per month.

The remaining correspondence notifying the county of the change, said as follows:

“While we are always reluctant to raise video prices, the rapidly rising wholesale cost of television content is forcing our retail video prices higher and higher. The reality is that cable and satellite companies are constantly being pressured by the programmers we buy from to pay more for the channels we carry. If a cable or satellite company dares to resist a programmer’s price increase, they get blacked out. Over the past few weeks, national shutdowns involving Viacom/DirectTV and Rainbow Media/Dish Network stripped consumers of channels like AMC (American Movie Classics), Nickelodeon, MTV (Music Television) and Comedy Central. But these disputes represent just the tip of the iceberg. Already this year, there have been 22 separate broadcast station blackouts that have resulted in consumers in over 60 markets losing access to channels. Hearst’s recent blackout of Time Warner Cable and Bright House customers is just the latest example of the onerous price increases the programmers are trying to force upon cable and satellite companies and, ultimately, their customers.

Mediacom went on to urge customers of cable and satellite television to get involved by seeking help from their elected officials in Washington to have the FCC (Federal Communications Commission) do more regulation within the industry.

The letter went on to say, “While the current regulatory regime created by Congress 20 years ago leaves us little choice but to raise rates or lose channels, we have been working hard to reform this dysfunctional system in Washington. We have repeatedly asked the Federal Communications Commission and Members of Congress to protect our customers from programmer practices that are rendering pay television unaffordable for more and more Americans. We invite the leaders of your community to do the same.”

The correspondence further stated, “I also wanted to take this opportunity to update you regarding the broadband services we provide to your community. Mediacom is pleased to announce that it was recently recognized by a FCC study as one of only five of the nation’s largest Internet service providers to routinely meet or exceed advertised residential broadband speeds. However, these accolades would not be possible without constant attention to and reinvestment in our fiber network. The investments required to maintain our fiber network, in terms of personnel, planning and capital, are significant. In addition to making the video price changes identified above, we will also be adjusting the rates for Mediacom Online Intro, Online and Online Max by $2, $4 and $5 respectively.

The letter, signed by Senior Manager, Government Relations Lee Grassley, concluded saying he wanted to express how much Mediacom appreciates the opportunity to continue to serve the community’s telecommunications needs.