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D-Day Is Coming For High Cable Prices
Answer? Lower TV Prices, Raise Broadband Prices

Over the summer the cable industry paid a lot of lip service to lowering cable TV prices, insisting that they were very conscious of the fact that the recession and housing implosion left many users struggling. However, despite the bi-annual rate hikes many families continue to pay for cable, resulting in companies like Time Warner Cable offering paltry discount TV tiers that are so packed with restrictions as to have little to no value. Cable simply refuses to seriously compete on price.

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Even the cable industry's biggest cheerleader and stock fluffer, Sanford Bernstein telecom analyst Craig Moffett, has noted that these rate hikes simply aren't sustainable and something has to give.

Moffett was back this week arguing in a research note to investors that something has to give in this equation. Families on the lower end of the income graph are struggling to meet major bills, and ultimately cable is going to be among the first things cut -- especially as lower-priced Internet alternatives continue to evolve:
quote:
After the necessities of food, shelter, transportation and healthcare each month, the bottom 40% of U.S. households have already exhausted all of their disposable income. There is nothing left for clothing… for debt service… for cable… or for phone. The inability to pay for necessities — much less home entertainment — threatens to upend an industry that has already more or less reached its saturation point. According to Moffett, approximately 86 percent of U.S. households currently pay for TV services. “Relatively few other sectors have this kind of economic exposure to the bottom half,” he wrote.
Of course out of the other corner of his mouth Moffett has been slamming cord cutters as losers in their mom's basement wolfing down dog food, while relentlessly pushing for higher per-byte broadband pricing that would sock these struggling families in their already hurting wallets. In short, as an investor Moffett knows that cable is ultimately (gasp) going to have to compete in the television sector on price, and they'll need to recoup those losses elsewhere if his company and client's stocks are to remain afloat. That elsewhere will be metered broadband, an effort to constrict the pipe and drive up costs for a fixed-or-declining cost product.
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hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

HSI Prices

where the only prices that TWC NEO/WPA has been raising. CableTV prices have been staying the same with RR being raised. Last year rates didn't go up but you can bet this year they'll be going up. NEO/WPA sends their notices out at the end of Sept. and middle of October. MidOhio will be among the others that will be giving a rate hike.

thomasr
join:2010-01-21
Winston Salem, NC

thomasr

Member

Raise broadband prices?

Cable is already loosing customers on their high priced TV services and Moffett thinks the answer is raise prices on the other services available on the cable...

Get ready for this idea to sink just like the industry as a whole. These corporations and their investors really know how to ruin good things, and for what?

Greed! Hope the investors are happy when they get zero on their investment.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Raise broadband prices?

Really, zero? Prices will increase until the market won't bear it and then they'll relax. Businesses aren't going to drive consumers away to zero profit.

BillRoland
Premium Member
join:2001-01-21
Ocala, FL

BillRoland

Premium Member

Not sure they can make it up on HSI

I would argue they can't really make it up in jacking HSI prices either, they'll end up driving customers to cheaper tiers or to cheaper DSL.

Corehhi
join:2002-01-28
Bluffton, SC

Corehhi

Member

Re: Not sure they can make it up on HSI

said by BillRoland:

I would argue they can't really make it up in jacking HSI prices either, they'll end up driving customers to cheaper tiers or to cheaper DSL.

I don't know about that. My cable/phone/internet provider is raising high speed internet rates all tiers by $10 if you don't have phone and cable service along with internet. The problem is we have no other choices for high speed internet, they'll say sat internet is another option so they aren't a monopoly. Many people around here have sat TV and cell phones instead of landlines so the local company is raising the internet fees and basically you can't escape it.

On another rant, Hargray which is my local company will not even give me a good faith estimate in writing of what my bill would be a month if I have their phone/cable/internet bundle. They simply stare at their computer screens and quote you a price, when you get your next bill which is way higher they blame it on taxes, fees etc. It is straight up fraud what they do and they are smart enough not to put anything in writing, internet service is the only price they quote you in writing but of course there is the $4.99 a month modem rental plus taxes again. I own my own modem and they gave me a hard time about giving them back theirs. I said here you go I bought my own modem here's yours and stop billing me a monthly fee. I was told by the first person I couldn't do that. Half hour late I was right they were wrong. Most people would just pay the extra $4.99 a month not knowing they can buy their own modem.

»www.hargray.com/
BTW the $99 package is BS.
ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL

ISurfTooMuch

Member

Greed

Let's boil this down. What Moffett is saying is that people are cutting their TV expenditures because they see that as discretionary spending. So he's saying that the cable companies need to raise Internet prices, which people are more likely to see as something they have to pay for.

So, basically, this is just a way to get the same amount of cash out of people, just in a way that's harder for them to avoid paying.

thegeek
Premium Member
join:2008-02-21
right here

thegeek

Premium Member

Re: Greed

Except what they will really do is raise the prices of internet and continue to raise the prices of TV. Nobody really expects them to actually lower any prices right? You're kidding yourself if you expect that.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Greed

when the MSOs raise one they generally don't raise the other. And actually HSI prices generally don't get raised. TV only gets raised.
ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL

ISurfTooMuch

Member

Re: Greed

Agreed, but I think that's going to change. If cable revenues start to drop off, investors are going to demand that the companies increase revenue somewhere else, and the only place that can happen is with Internet access.

andyb
Premium Member
join:2003-05-29
SW Ontario

andyb

Premium Member

Re: Greed

Actually if they lowered the price to an affordable level not filled with restrictions people may come back there for increasing revenue.Right now its a ARPU.They dont care about the $30 a month guy just the $100 guy.3 or 4 $30 dollar guys can bring in revenue if ya dont tell to fuck themselves like they do.

RichardCatz

Anon

Re: Greed

Geez $30 who pays that?? Out in CA everybody pays around $100 usually more. I gotta get off the treadmill sooner that later, myself
ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL

ISurfTooMuch to thegeek

Member

to thegeek
Oh, I don't expect them to lower them. I think the idea is to make up for the lost revenue from people dropping TV by raising rates on people getting Internet.
openbox9
Premium Member
join:2004-01-26
71144

openbox9 to ISurfTooMuch

Premium Member

to ISurfTooMuch
Many have been suggesting for a while now that these companies aren't going to take revenue hits. All those "cord cutters" better enjoy it while they can
axiomatic
join:2006-08-23
Tomball, TX

axiomatic

Member

D-Day

Comcast is the only ISP I can get in my neighborhood. I have to stick with whatever price they offer me and I assure you I am being reamed in the pooper right now. I do the Triple-Play and my bill is consistently $275/mo.

My family is in the group that can't sustain this anymore either. We are very close to dropping all but the internet connection.

Ooma is looking pretty sweet right now too for the VOIP and I have a perfectly working powered OTA antenna on my roof.

Comcast, if you are going to keep me as a Triple-Play customer I would get to this purported D-Day post haste.
pandora
Premium Member
join:2001-06-01
Outland

pandora

Premium Member

Re: D-Day

I pay $59.95 per month for Comcast HSI business in Connecticut. This includes basic cable at no cost. My speed is 12 down and 6 MB up. I have 4 active Ooma Core VOIP systems, and 2 active Google Voice VOIP systems.

We use Netflix, cloud backup, play World of Warcraft and other online games. We download movies and shows onto our DirecTV DVR's. Monthly data use is between 200 and 300 GB.

There is no sales tax, and no other charge for Comcast. I am considering a Silicondust box to see how it'd work with our PC's.

$0 for phone, $120 for DirecTV with 4 active HD DVR's, $60 for Comcast Business internet, $9 for Netflix.

I think anyone can get free calling with Google Voice and an ObiTalk ATA. Porting a number to Google costs $20 and is a one time fee.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: D-Day

you fail to mention that Google has hinted and hinted that Voice is only free until the end of the year- At that point- they can also charge a monthly fee. And for what? a service that has no actual customer service.
pandora
Premium Member
join:2001-06-01
Outland

pandora

Premium Member

Re: D-Day

said by hottboiinnc4:

you fail to mention that Google has hinted and hinted that Voice is only free until the end of the year- At that point- they can also charge a monthly fee. And for what? a service that has no actual customer service.

Completing phone calls? Hosting a phone number? Forwarding calls? Taking voicemail? Transcribing voice mail or calls?? Assuming Google doesn't extend the free period, and doesn't keep extending the free period.
Expand your moderator at work
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to axiomatic

Member

to axiomatic

Re: D-Day

said by axiomatic:

Comcast is the only ISP I can get in my neighborhood. I have to stick with whatever price they offer me and I assure you I am being reamed in the pooper right now. I do the Triple-Play and my bill is consistently $275/mo.

My family is in the group that can't sustain this anymore either. We are very close to dropping all but the internet connection.

Ooma is looking pretty sweet right now too for the VOIP and I have a perfectly working powered OTA antenna on my roof.

Comcast, if you are going to keep me as a Triple-Play customer I would get to this purported D-Day post haste.

How are you paying $275? Even separately it wouldn't be that high. I'd drop TV before I'd drop internet.

jseymour
join:2009-12-11
Waterford, MI

jseymour to axiomatic

Member

to axiomatic
said by axiomatic:

I do the Triple-Play and my bill is consistently $275/mo.

I've never been able to understand how people justify that kind of money for those services.

Cable Internet (and it's business HSI) + telephone + TV (OTA, the occasional rental, and Netflix and Hulu Plus streaming subscriptions) + cell phones cost us no more than about $180/mo., and we already think that's too much!

We don't find Hulu Plus very useful. We'll probably drop it.

Jim

Majestik
World Traveler
Premium Member
join:2001-05-11
Tulsa, OK

Majestik to axiomatic

Premium Member

to axiomatic
Wow.
$275/month is my gas,elec,water,sewage,unlimited iPhone and iPad,Netflix,Hulu,Vudu,and one month of gas for my car and change.

I get basic cable with my condo. I think I watched about 3 hours of tv in the past 4 weeks.

cork1958
Cork
Premium Member
join:2000-02-26

cork1958 to axiomatic

Premium Member

to axiomatic
said by axiomatic:

Comcast is the only ISP I can get in my neighborhood. I have to stick with whatever price they offer me and I assure you I am being reamed in the pooper right now. I do the Triple-Play and my bill is consistently $275/mo.

My family is in the group that can't sustain this anymore either. We are very close to dropping all but the internet connection.

Ooma is looking pretty sweet right now too for the VOIP and I have a perfectly working powered OTA antenna on my roof.

Comcast, if you are going to keep me as a Triple-Play customer I would get to this purported D-Day post haste.

$275 a month!! Holy sheep s**t!!

You must have the highest package on everything under the sun, huh?

My internet, tv and phone add up to about $129!! That's using Charter expanded basic tv, 12/1 internet and unlimited Vonage phone. No specials on either of the Charter services either as I despise having to call them to negotiate those "deals"

Wouldn't have tv at all, if it wasn't for the wife as there's usually nothing on that interests me.

Yeah,
I know about caps on internet so some people THINK they have to have the maximum plan there, but that's another area that is easily reduced without making any killer sacrifices.
AndyDufresne
Premium Member
join:2010-10-30
Chanhassen, MN
Ubiquiti EdgeRouter ERPro8
Netgear R7000

AndyDufresne

Premium Member

Not just cable

Video pie in general as a stand alone product is shrinking. Folks are re-evaluating if the value is there. Premium channels are getting hammered since there usually added cost. Housing market is dead so no increase in the amount of people ordering news video services. Generation of college kids with no inclination to get video from dish or cable spells trouble for video providers.

You'll soon see that the opposite will start to happen from last couple of years with double digit percentage increases in internet services and video services staying flat.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Not just cable

Sandvine actually has a new product that tracks that and tells you how much of your customers use what other service over network; including NetFlix and others.

The article was linked off the morning "links" on here the other day.
rody_44
Premium Member
join:2004-02-20
Quakertown, PA

1 recommendation

rody_44

Premium Member

Again

These stories can be printed yearly. Nothing changes but sure enough a new article describing the same dam shit as last year and the year before that. I guess they think if they beat the same dam dead horse maybe a different ending.

DataRiker
Premium Member
join:2002-05-19
00000

DataRiker

Premium Member

I don't think so.

We live in a country where people will gladly pay 150 dollars a month for a phone bill.

Whats a 100+ dollar cable bill to them?
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: I don't think so.

said by DataRiker:

We live in a country where people will gladly pay 150 dollars a month for a phone bill.

Whats a 100+ dollar cable bill to them?

cable all you can do is watch TV at home. Phone you can do more than just talk and it's portable. Also TV content can get gotten for less legally or even free illegally. You can't do something similar with cell phone service.

DataRiker
Premium Member
join:2002-05-19
00000

DataRiker

Premium Member

Re: I don't think so.

I agree.

But, I've noticed people my age generally don't save money, so every month they are happy with spending half of their income on phone+ tv + whatever.

Corehhi
join:2002-01-28
Bluffton, SC

Corehhi

Member

Re: I don't think so.

said by DataRiker:

I agree.

But, I've noticed people my age generally don't save money, so every month they are happy with spending half of their income on phone+ tv + whatever.

True I can't believe people who hook up their whole family with smart phones. You're talking a car payment for that.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: I don't think so.

said by Corehhi:

said by DataRiker:

I agree.

But, I've noticed people my age generally don't save money, so every month they are happy with spending half of their income on phone+ tv + whatever.

True I can't believe people who hook up their whole family with smart phones. You're talking a car payment for that.

Getting to the point where all you can get is smartphone( and the mandatory data plan ). Cell companies have you by the balls.

Anyways my son just turn 16 and if he wants a smarthpone he can get a J O B and start paying his part of the cell phone bill.
Happydude32
Premium Member
join:2005-07-16

Happydude32 to 88615298

Premium Member

to 88615298
said by 88615298:

said by DataRiker:

We live in a country where people will gladly pay 150 dollars a month for a phone bill.

Whats a 100+ dollar cable bill to them?

cable all you can do is watch TV at home. Phone you can do more than just talk and it's portable. Also TV content can get gotten for less legally or even free illegally. You can't do something similar with cell phone service.

Sure you can. Get an iPod Touch, deactivated iPhone or Android phone, install the Skype app and find an open wifi spot. Granted it would only be free Skype to Skype, but it still is a work around.

Anyhow, my cable bill actually went DOWN $17. And that's with the same level of services and not threatening to cancel anything. Time Warner just started offering a version of Signature Home with all the premium movie packages (sans Starz) for $230, which is an about $17 savings over having each one separately.

DataRiker
Premium Member
join:2002-05-19
00000

DataRiker

Premium Member

Re: I don't think so.

230 for TV ?

Yikes!
Happydude32
Premium Member
join:2005-07-16

Happydude32

Premium Member

Re: I don't think so.

Actually its closer to $265 after you add in the extras I have that arn't included in Signature Home Premium View. Plus I subscribe to NHL Center Ice and MLB Extra Innings when those are in season, But those prices include 50Mb Broadband and digital phone service.

cdru
Go Colts
MVM
join:2003-05-14
Fort Wayne, IN

cdru to DataRiker

MVM

to DataRiker
said by DataRiker:

Whats a 100+ dollar cable bill to them?

I pay ~130 or so for my family cell phone bill. And we have a $110 Comcast Preferred Plus + Starz + HBO + Phone + 20mbit internet plan.

After dinner last night I turned the TV on. Flipped through all the channels. Twice. Couldn't find a single damn thing on that was worth watching.

I've started to question whether a $100+ cable bill is really worth it. Unfortunately though the internet-only option is only slightly less for similar speeds.
pkorx8
join:2003-06-19
San Francisco, CA

pkorx8

Member

OTA Network programming

If people are cutting cable and going back to OTA for TV, are the major OTA networks (and advertisers) seeing this?

After many years of cable, we realized that we watch OTA network channels most of the time. Thus we got a huge attic antenna and cut the cord last year.

••••
cableguy619
Premium Member
join:2003-06-24
Chula Vista, CA

1 edit

cableguy619

Premium Member

I guess gas and medical dont go up....

ever????!!! Bottom line as cost goes up it affects everyone from you to me to the businessed.

Gas goes up and cost and most peopel who complain expect their consumption of products will stay the same? lol

just being realistic.. if you don't need TV don't buy it, if you don't need internet don't buy it...

peopel survived for ages without any of these luxuries and so can any of us.

business are into making money not losing it. Any of you work for a company that provides a product or service? Prices go up bottom lien and being that are into making a buck are not willing to absorb the cost. that would be just dumb business...

••••••
hclarkjr
join:2002-08-09
Hostetter, PA

hclarkjr

Member

bye bye comcast

comcast raised my bill $16 last month and when i called to complain was given no explanation. when i stated this was going to make it difficult for me to keep their service i was told sorry you feel that way. i have since found out they intended to raise my bill an additional $10 in a few months, direct TV is coming sunday to install a dish for me. so long comcast
jp498
join:2011-08-01
Rockland, ME

jp498

Member

bundle pricing

Something is to be learned from Fairpoint here. They charge a ton for their primary service (pots) and little for their DSL. And they are getting hit hard by cord cutting and people moving their phone to cable for less $. Then fairpoint loses both services.

Cable does the same thing; charge a lot for their primary service (tv channels) and less for the broadband.

Cutting the cord on phone has been technically easy (cell phone or voip). Cutting the cord on TV is getting easier, but hasn't been so easy in the past if you really wanted to save money. The fact people can't afford it sometimes makes it an easier decision still.

RichardCatz

Anon

Re: bundle pricing

Makes me think of joining the Amish!! I can't find a 12 step for going off the grid
majortom1029
join:2006-10-19
Medford, NY

majortom1029

Member

hmm

This does not matter on long island. when either verizon or cablevision raises their prices the other also raises their prices.
rid0617
join:2003-07-20
Greer, SC

rid0617

Member

15 year Directv customer gone

I got tired of high long distance rates so I went to magic jack 3 years ago, very satisfied.

Got tired of high satellite bills offering reality shows, reruns, trash programming and 21 minutes of commercials and disconnected it after 15 years.

Antenna in the air, netflix dvds and a free to air satellite system results in saved money to cover everything else that is going up. No intention of ever going back.

Internet all I can get is 3.0 down with AT&T or extremely expensive poor service from Charter.
Ostracus
join:2011-09-05
Henderson, KY

Ostracus

Member

Re: 15 year Directv customer gone

said by rid0617:

Antenna in the air, netflix dvds and a free to air satellite system results in saved money to cover everything else that is going up. No intention of ever going back.

FTA for a subset that can get a dish with a clear view.
Mr Matt
join:2008-01-29
Eustis, FL

Mr Matt

Member

Comcast might outsmart themselves.

Here in Central Florida Comcast now charges $43.95 per month for their lowest level performance tier. The economy tier is a joke at 1Mbps at $25.95 per month. Many of my page requests are Slowsky slow.

I am considering subscribing to DSL since CenturyLink just installed fiber to the node serving this development and are offering up to 25Mbps in my neighborhood. I am considering adding 3Mbps broadband access to my voice service for $20.00 per month and dropping Comcast Broadband since I have no interest in streaming movies at this time.

Comcast must be having revenue withdrawn pain because I have observed many of my neighbors, that have not switched to satellite are switching to CenturyLink Prism service. When a customer orders Prism Service CenturyLink replaces their drops with temporary drops until a contractor buries a permanent drop.
Paxio
Premium Member
join:2011-02-23
Santa Clara, CA

Paxio

Premium Member

I don't see higher broadband prices

Maybe I'm too close to it but I just don't see a future where broadband prices spiral up. As long as there are smaller companies getting into this space, it will put the brakes on the major incumbents and their plans to gouge their internet customers.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: I don't see higher broadband prices

Prices likely aren't rising, but caps and metering are coming. Effective price increase without increasing the price...especially when the intent is to curtail the movement of traditional pay TV subs to content via the Internet.

andyb
Premium Member
join:2003-05-29
SW Ontario

andyb

Premium Member

Ala carte

The day is coming when they must offer it.Its what the people want and they will get it eventually

Unbundled
But When ? ?
Premium Member
join:2010-09-13
Irving, TX
Technicolor E31T2V1

Unbundled

Premium Member

Re: Ala carte

The ala carte model works in other countries. The industry tried to distort the facts about the profitability of the ala carte model, but finally the FCC got the true facts. But action on ala carte will likely have to wait until after the 2012 elections, at the earliest. AT&T wants to rule the telecom world (again). I'd like Congress to give ala carte the place it needs. Put the consumer first, and the business will follow...

BTY, after TW took over North texas in the swap with Comcast, they managed, in about 5 years, to almost double the Basic cable rate from $10 to $18. This just for the cable out of the wall, with no box, so you can see your local channels clearly. So much for pushing fixed income Grandma over the fucking cliff !!!
Qreptiles
join:2005-07-20
Grants Pass, OR

Qreptiles

Member

cord cutters

We keep hearing from these so-called analysts and cable companies that cord cutters are a small group and that they are no big deal. Yet within the last two weeks Turner Broadcasting has started to require a user name/password from a participating cable/sat company to watch programing from their websites.
Maybe it is just me but sounds like cord cutters are a much bigger group than they want everyone to believe.

•••••

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK

Premium Member

All they have to do is move to penalty pricing on Internet

... For video streaming... Caps, overages, etc

Make it too expensive to get most your video online.... this will then push people back to PayTV and make tons more profit off Internet.

It's a win-win for them and a lose-lose for consumers, society, and our future.

So therefore, option A it is.

jhacker
join:2001-12-11
Peoria, IL

jhacker

Member

So True!

I recently called Comcast like I do every six months, in an attempt to get new specials. They actually offered me $20 for Starter tier, $10 for Preferred add-on, and $10 for each premium channel. That was great, as it was basically an extension of the special they were giving me over the previous 6 months. However, they would not allow me to keep the special of 26.95 for internet, so now it goes up $18. They must know they have a lot of cord-cutters who will keep their internet service. Unfortunately they're right, because with the 12 devices we have in our house that use the internet (not all at the same time), 3 meg DSL just doesn't cut it anymore! That's all AT&T will offer to us.
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