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Cablevision Joins Rate Hike Season Festivities
Cable TV sees hike, broadband and VoIP remain unchanged for six years running...
by Karl Bode Wednesday 29-Oct-2008 tags: prices · business · cable
On the heels of broad hikes by Comcast, Mediacom, and select hikes by Cox -- Cablevision dropped me a line this evening to say they'll be joining the other cable operators in bumping the price of some TV packages next year. The company will be raising cable TV rates in 2009 by an average 3.5%, though spokesman Jim Maiella insists to me via e-mail this is "once again below the current rate of inflation" (not sure if that makes you folks feel any better).

Maiella notes that the company's broadband and VoIP products are not seeing a hike for going on six consecutive years. The company's $90 triple play promotion is also not seeing hikes, and hasn't since 2004 when it was introduced, says Maiella. The exact nature of the hikes, which were 4.7% last year, hasn't yet been specified. A press release sent to the media suggests the hikes are justified by Cablevision upgrades, including their Wi-Fi initiative and VOD enhancements (customers can obviously make that determination for themselves):

Cablevision has continued to build additional value into its video, phone and Internet services, including an initiative to deploy wireless Internet access (WiFi) across its service area as a free enhancement for Optimum Online high-speed Internet customers, the introduction of advanced features like Caller ID on the TV, and the significant expansion of free video on demand (VOD) programming and high-definition channels, with 65 free HD services now available to iO TV digital cable customers.

Cablevision customers: do you feel you're getting your money's worth? Everyone else: happy cable (and probably telcoTV) rate hike season. We know what you're getting this year!

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Jeffrey
Wilpon please sell the Mets
Premium
join:2002-12-24
Long Island
kudos:3

1 edit

Love that line

quote:
"once again below the current rate of inflation"
My raise, which will be nonexistent, will also be below the rate of inflation.
jaminus

join:2004-10-14
Arlington, VA

Re: Love that line

Not that I'm for rate increases, but it actually is quite relevant that the hike is smaller than the increase in price level.

Cablevision doesn't live in a bubble. Its employees expect higher wages, gas is more expensive (well, at least it has been on average) and food costs more as well. Besides, the quantity of goods and services you must now go without in order to pay your cable bill is smaller than it was last year. Again, not saying you shouldn't grumble, but higher prices are a part of life.

It also really sucks that your raise is less than inflation. To an economist, that wouldn't even be a raise! If your management understands the distinction between real and nominal money you might ask them what you did to deserve a pay cut.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable
said by Jeffrey:

quote:
"once again below the current rate of inflation"
My raise, which will be nonexistent, will also be below the rate of inflation.
Now that's chutzpah, considering that one of the main complaints against the cable industry, has been that their rate increases have outpaced inflation 3:1 since 1996.

I guess if you raise early and often, eventually you can coast and pretend you're doing us a favor.

We disconnected cable TV some years ago, when they jacked basic service to $52/month. If they offered us ala carte services, I'm sure we'd pay at least $30/month, maybe more, given the choice. But until that day comes, they'll make ZERO dollars off us.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

in the minority.

I am in the minority but I am happy. I have boost now (just got it about a week agon) and I am on the tripple play .

If there wasnt free wifi and docsis 3 on the horizon then I would complain .

I take it this way atleast cablevision doesnt have monthly caps like the other cable companies have.
plat2on1

join:2002-08-21
Hopewell Junction, NY

i'm unhappy

unhappy cablevision doesn't service my area
Joe12345678

join:2003-07-22
Des Plaines, IL

They make you pay more for HBO, SHO, MAX On Demand

They make you pay more for HBO, SHO, MAX On Demand. It is free on other systems with when you pay for HBO, SHO, MAX.

HydroponiK
nom nom nom
Premium
join:2001-08-03
New Jersey

bad

Need more competition....can't wait til FIOS is available in my area, then I'm dropping CV like it's hot.
--


Ain't that a bitch.

Jmartz

join:2000-07-20
Tenafly, NJ

Maiella

Maiella doesn't care that it's below the rate of inflation... considering he gets all three services for FREE. As a matter of fact, nobody at Cablevision pays for their cable... not even people who work for Clearview.. it's a free ride all around for everyone.

hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
kudos:4

Re: Maiella

said by Jmartz:

Maiella doesn't care that it's below the rate of inflation... considering he gets all three services for FREE. As a matter of fact, nobody at Cablevision pays for their cable... not even people who work for Clearview.. it's a free ride all around for everyone.
Its called a benefit for working for a company. Nothing wrong with that. It costs the company virtually nothing.

Hob
--
"A foolish consistency is the hobgoblin of little minds."
- Ralph Waldo Emerson

SLD
Premium
join:2002-04-17
San Francisco, CA

Re: Maiella

If that is true, why do they keep pointing to programming costs from networks as the driving force behind the price increases?

hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
kudos:4

Re: Maiella

said by SLD:

If that is true, why do they keep pointing to programming costs from networks as the driving force behind the price increases?
It costs the company virtually nothing as the benefit in having the product in the employee homes and giving them hands on experience outweighs the programming costs.

Hob
--
"A foolish consistency is the hobgoblin of little minds."
- Ralph Waldo Emerson

Attack Gypsy

join:2007-05-10
Bridgeport, CT
said by Jmartz:

Maiella doesn't care that it's below the rate of inflation... considering he gets all three services for FREE. As a matter of fact, nobody at Cablevision pays for their cable... not even people who work for Clearview.. it's a free ride all around for everyone.
I used to work for CV. That statement is not quite true.

They get the basics. TV (Gold package) , Internet (15/2 tier), and Phone, for free. Anything above that they pay for. They pay for PPV, the 30/5 tier, 2 phone line, as well as boxes and taxes on the account. I had 3 boxes, 1 a DVR, the 30/5 tier, and the basics, and paid about 40 some off bucks a month.

Please note, this is an industry standard benefit. Many of these companies offer it as a benefit. It's an employee retainer that really doesn't cost them anything.

Not quite a free ride. More like a highly discounted one. Now I'm paying almost 200 bucks a month for what I had. So, about 20%.

Jmartz

join:2000-07-20
Tenafly, NJ

Re: Maiella

said by Attack Gypsy:

They get the basics. TV (Gold package) , Internet (15/2 tier), and Phone, for free. Anything above that they pay for. They pay for PPV, the 30/5 tier, 2 phone line, as well as boxes and taxes on the account. I had 3 boxes, 1 a DVR, the 30/5 tier, and the basics, and paid about 40 some off bucks a month.
Someone in my family worked for clearview for a while and he got 2 boxes for free, io gold, playboy, optimum online and optimum voice. No taxes, no franchise fees, or anything were paid. The bill was $0. The boxes would not work with VOD... the free stuff would not work and interactive channels would not work. But everything was free.

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

Re: bad

said by HydroponiK:

Need more competition....can't wait til FIOS is available in my area, then I'm dropping CV like it's hot.
FiOS is in my area and there is no bargain. You can play them off of each other by switching yearly but expect to pay about the same no matter who you choose. Also, be prepared to pay more for FiOS voice service because they still tack on all of the standard telco fees such as the "FCC Line Charge".
--
I support the right to keep and arm bears.

I am school

@cuny.edu

Hikes

Looks like it's time to get rid of all the movie channels.
Bobcat
Premium
join:2001-02-04

Upgrades? More like downgrades

Cablevision dropped a bunch of channels this year. They dropped SciFi, A&E, TLC, and several other channels. Cablevision should be decreasing my rate. $51.12 per month is a rip-off.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

Re: Upgrades? More like downgrades

You could have stated the truth. They did not DROP the channels they only made them digital. You odnt get them because you dont have abox.
Bobcat
Premium
join:2001-02-04
Reviews:
·Verizon Online DSL
·Optimum Online
·EarthLink

1 edit

Re: Upgrades? More like downgrades

said by majortom1029:

You could have stated the truth. They did not DROP the channels they only made them digital. You odnt get them because you dont have abox.
Which would cost me even more money, so it's a stealth rate hike! Bottom line is I don't get the channels that I used to get, and it would cost me more money to get them.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
pretty soon though everything will go digital as the cable companies move to switched so they can push their primary money makers. HSI and phone.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

obeythelaw
Premium
join:2003-04-16
Bayonne, NJ

is it because

the broadband and voip are already overpriced at their current rates? sure, it's good that they arent raising them, but after 6 years, they should go down as the level of service should have gotten cheaper to deliver.
--
Lets go Giants!!
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

Re: is it because

So what about verizon. They have raised rates also.

RARPSL

join:1999-12-08
Suffern, NY
said by obeythelaw:

the broadband and voip are already overpriced at their current rates?
The Broadband (both the 15/2 and 30/5 Boost Levels) are a Bargain compared to what OTHER Cable Systems (such as COX/COMCAST/TWC) deliver for the same or higher price. Only FIOS has an equivalent price level (at least in CV areas). I think that you get good value for your money with OOL when you compare what that money will buy you from other Cable Companies.
Bobcat
Premium
join:2001-02-04
Reviews:
·Verizon Online DSL
·Optimum Online
·EarthLink

1 edit

Re: is it because

said by RARPSL:

said by obeythelaw:

the broadband and voip are already overpriced at their current rates?
The Broadband (both the 15/2 and 30/5 Boost Levels) are a Bargain compared to what OTHER Cable Systems (such as COX/COMCAST/TWC) deliver for the same or higher price. Only FIOS has an equivalent price level (at least in CV areas). I think that you get good value for your money with OOL when you compare what that money will buy you from other Cable Companies.
I'd be an OOL customer if CV would have a 6 Mbps plan for $25 per month. $45 per month is too expensive, no matter how fast it is. So, Verizon DSL gets my money instead.

RARPSL

join:1999-12-08
Suffern, NY

Re: is it because

said by Bobcat:

said by RARPSL:

said by obeythelaw:

the broadband and voip are already overpriced at their current rates?
The Broadband (both the 15/2 and 30/5 Boost Levels) are a Bargain compared to what OTHER Cable Systems (such as COX/COMCAST/TWC) deliver for the same or higher price. Only FIOS has an equivalent price level (at least in CV areas). I think that you get good value for your money with OOL when you compare what that money will buy you from other Cable Companies.
I'd be an OOL customer if CV would have a 6 Mbps plan for $25 per month. $45 per month is too expensive, no matter how fast it is. So, Verizon DSL gets my money instead.
That is a different issue. You have a Bandwidth Level that you are willing to live with and a price point you are willing to pay for that level. Since your price and bandwidth points are lower than what CV offers, their bottom tier is "Too Expensive" (for your needs). What I was discussing were the prices for equivalent bandwidth and/or what a set price will buy you in bandwidth. By that standard, CV is a bargain. The fact that you are not willing to pay that much has nothing to do with the comparison (only that CV's offerings are faster and more expensive for your needs/desires).
Bobcat
Premium
join:2001-02-04
Reviews:
·Verizon Online DSL
·Optimum Online
·EarthLink

Re: is it because

said by RARPSL:

(only that CV's offerings are faster and more expensive for your needs/desires).
Not quite. A correct statement would be: CV is more expensive than I can afford.

tubbynet
reminds me of the danse russe
Premium,MVM
join:2008-01-16
Chandler, AZ

proof anyone...?

does this mean that collectively, there is no competition occuring? obviously the mso's can't directly compete with each other, but wouldn't one *think* that if there was indeed competition from indie sources/telcos, these rate hikes wouldn't happen in an effort to try and provide the better bottom line?

q.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: proof anyone...?

It seams the majority of rate hikes are for pay television, of which there are two main competitors and maybe a third in some areas. Until the content distributors beat down the content producers, I would expect to continue to see rate hikes for most providers.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ

Re: proof anyone...?

said by openbox9:

It seams the majority of rate hikes are for pay television, of which there are two main competitors and maybe a third in some areas. Until the content distributors beat down the content producers, I would expect to continue to see rate hikes for most providers.
the content people are the real crooks then. for example most of the HD feeds cost extra for an MSO to bring in even though most of the network live content nowdays is recorded in HD and downmixed for their SD feed.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

tubbynet
reminds me of the danse russe
Premium,MVM
join:2008-01-16
Chandler, AZ

Re: proof anyone...?

fta is looking pretty good...
i can pull down episodes of south park and the daily show (legally) for free. i can watch all of the video shown on c-span over the web (without installing real player). now if i can only find the url that channelsurfing.com uses for their msnbc feed so i can watch keith olbermann, i'd be set.

q.

MxxCon

join:1999-11-19
Brooklyn, NY

1 edit

Kinda fair?

I think Cablevision's prices are better than other CableCo's, but in general it's too expensive for what it is.

SirXILE
The SolWar 2-1
Premium
join:2001-02-24
Brooklyn, NY

Another one...

Meh, I'm still staying with CV but this is getting ridiculous. Whoop dee doo. :-(
mrvid

join:2007-06-19
Levittown, NY

2 edits

Are TV prices getting hiked to subsidize free wifi..

We are not expecting you not to raise rates if those services cost more to offer, just be careful. Charging unjustifiably too much for TV will likely have people either dumping their service for a TV antennae or switching to the competitor (aka FIOS, DirecTV, Dish, etc.), or even going to the internet to watch TV as an alternative.

What bothers me is not everyone wants to use your free Wifi and certainly not people who don't use your internet service. If your going to offer more net, then raise the net, not the TV. I'm not looking for any of it to be raised, but if your going to raise your prices, raise the price of the specific service that costs more. If VOD costs more, then charge more separately for that.

In short, Cablevision- anger- to me, your handing TV subscribers the bill for more internet (as in free wifi) and if thats so, its not fair. Put this into play and I will be the first of many, im sure, to run right over to FIOS, forever.

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