Comcast, Dish, AT&T to Raise TV Prices in 2019

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Comcast, Dish, AT&T to Raise TV Prices in 2019

Post by tvroadmin » Mon Jan 07, 2019 2:27 am

Comcast, Dish, AT&T to Raise TV Prices to Counter Cord-Cutting
By Gerry Smith
January 4, 2019, 12:08 PM EST Updated on January 4, 2019, 1:18 PM EST


bloomberg_cordcutter_losses.jpg
Another year, another increase to your monthly pay-TV bill.

Giants including Comcast Corp., Dish Network Corp. and AT&T Inc.’s DirecTV plan to raise rates again in the new year, a move that could boost revenue but risks alienating subscribers who have been ditching their traditional TV subscriptions in record numbers.

Cord-Cutter Quandary

Cable and satellite providers are hoping to squeeze more money from consumers who remain loyal to their packages with hundreds of channels, Philip Cusick, a JPMorgan Chase & Co. analyst, said in a note this week, even though “this strategy could accelerate video sub declines.”

t’s common for pay-TV providers to raise prices in the new year. They are passing on the rising costs they pay to carry networks like CBS and ABC, as well as regional sports channels like the YES Network, which are shelling out more and more for sports broadcast rights.

The latest price increases come as cord-cutting accelerates. In the third quarter, the TV industry saw its largest ever rate of decline, with subscribers shrinking by 3.7 percent, according to MoffettNathanson LLC. Consumers are dropping traditional TV for lower-cost online options like Netflix Inc. and slimmer TV options from Hulu and YouTube.

Rising Fees

Comcast, the largest U.S. cable company, is raising its fee for regional sports networks by $1.50 on average and its fee for broadcast channels by $2 a month, according to Cusick. Charter Communications Inc., the second-largest U.S. cable provider, recently boosted its monthly fee for a set-top box by about 50 cents and its broadcast channel fee by about $1.

DirecTV is raising rates on all English-language video packages by $3 to $8 a month while hiking fees for regional sports networks by $1 to $1.90 in most markets. Dish said it’s increasing prices for English-language video packages by $3 to $5 a month. Altice USA, the fourth-largest cable operator, recently raised rates by 3 percent on Optimum subscribers.

A Comcast spokeswoman said the changes were necessary because of rising broadcast television and sports programming costs, “which are the largest drivers of price increases,” while an AT&T spokesman noted some DirecTV plans won’t increase. The other companies didn’t respond to requests for comment.

To avoid raising prices more and losing more customers, pay-TV companies have tried taking a hard line with channel owners demanding more money. Charter subscribers in 24 markets are currently not getting broadcast channels owned by Tribune Media Co. because of a contract dispute that could black out NFL playoff games this weekend.
Source: Bloomberg
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Re: Comcast, Dish, AT&T to Raise TV Prices in 2019

Post by tvroadmin » Mon Jan 07, 2019 2:38 am

Who would of thought. They are losing a million subscribers per quarter. You'd think one would break from the pack and try to LOWER prices in 2019 to attract more customers just as the US economy is going into recession, but what do I know. :thinking

I guess they want 2 million lost subs per quarter and 8 million more people switching to rabbit ears by the end of this year. Hopefully, some of those will stumble upon this forum and discover (or re-discover) the the big dish. :bigsmile
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