Cablevison Raises Cable Box Prices Citing Increased Programming Costs

[YoYoGo]

I recently received my Cablevision bill and enclosed was the dreaded annual year end "A Message from Optimum" informing me that my rates were going up.........again. The message read:

"Due to increasing programming costs, you will see some changes beginning with your January 2015 billing
statement. The monthly Sports and Broadcast TV Surcharge will increase from $4.98 to $5.98.
Additionally, the monthly price for each cable box will go from $6.71 to $7.56."

OK, I get it. The cost of programming does indeed rise and passing along the increases for that programming makes sense.

But what does the cost of programming have to do with the cost of my cable box?

Perhaps someone can clue me in on this.

(Of course maybe I should consider myself lucky to now have to pay only $7.56 instead of $6.71 per box since FIOS charges almost $10 per HD box and TWC charges $15 per HD box!)

 

[TheBigA]

But what does the cost of programming have to do with the cost of my cable box?

Exactly. At one time, those boxes were free. How do they expect you to get their service otherwise? It falls under the cost of doing business.

It seems similar to the old days with the phone company, where you had to pay a monthly rent on your phone. That all changed with deregulation, and the ability to actually BUY a phone. I think we need the same ability with cable. But the companies will find some other way to pass on their increases to us.

 

[luperm]

This is an easy one. It's a rate increase.
They stick a bunch of "below the line" fees on your bill, but keep the base price the same.
Now they can turn around and tell you that they've held the line on their packages for over 2 years when they raise the base fee next year.
Meanwhile, all along they have added equipment fees, sports surcharges, broadcast TV fees and other made up charges to increase average revenue per subscriber. This keeps Wall Street happy.
In the end, your bill goes up.

 

[ansky212]

I'm not sure if Cablevision does the same, but Verizon Fios locks in your rate for 2 or 3 years if you sign a contract. So if you're under contract they can't raise your programming rates. BUT, equipment charges are not included in the contract. So in order to obtain the rate increase for all these people locked in, they just raise the cost of the equipment. It's just a smoke and mirrors game as luperm alluded to above.

 

[luperm]

Cablevision does do some promotional pricing for new customers, winbacks and to combat potential FiOS defectors. However, there is no contract or early termination fees with Cablevision...you can leave Cablevision at any time with no penalty if you're not happy.

 

[Unregistered]

cable

And go WHERE? Cable is a monopoly pretty much.

 

[ansky212]

Cablevision does do some promotional pricing for new customers, winbacks and to combat potential FiOS defectors. However, there is no contract or early termination fees with Cablevision...you can leave Cablevision at any time with no penalty if you're not happy.

Well you can also get Fios now with no contract either.

 

[ansky212]

And go WHERE? Cable is a monopoly pretty much.

There is always Directv or Dish, assuming you can't get Fios. When I lived in Jersey City I had terrible service with Comcast so I switched to Directv and was pretty happy for the most part. Obviously some people don't want a dish on their roof, or have obstructions preventing them from doing so, but satellite is still an option for most people that want an alternative to cable.

 

[TheBigA]

AT&T is offering Uverse, which is their version of FIOS.

 

[luperm]

Well you can also get Fios now with no contract either.

Yes, you can. However most of the promos they advertise (gift card giveaway, guaranteed pricing, etc.) require a two year commitment. You have to be careful what you sign up for with FiOS. Most people can't resist the promos.
Satellite is a usually a good product if it works at your location. I believe that there is usually a commitment for that as well.

All things considered, I'm happy with Cablevision/Optimum.

 

[ansky212]

Yes, you can. However most of the promos they advertise (gift card giveaway, guaranteed pricing, etc.) require a two year commitment. You have to be careful what you sign up for with FiOS. Most people can't resist the promos.
Satellite is a usually a good product if it works at your location. I believe that there is usually a commitment for that as well.

All things considered, I'm happy with Cablevision/Optimum.

Yeah but I don't know why people are so afraid of contracts. If you are guaranteed a price lock for 2 years by signing the contract, why wouldn't you? How many people really have any reason to cancel within a 2-year period? I just willingly signed a new 2-year contract to lock in my price. I've been a happy Fios customer for almost 6 years. As far as I'm concerned there are no viable alternatives to switch to. It's not like I'm going to just wake up one morning and decide to cancel my service.

 

[Gregg.]

Well, some people intend to stay put for several years. But if you might be moving in the next two years to a community not served by Cablevision, you will have to pay a $10 per month penalty. So if you have to cancel a two-year contract after one year, that's $120. I don't know if they pursue you if you've moved away but I suppose if you ever want to reconnect with Cablevision, you'll have to pay your past bill.