CABLE TV $OAR POINT

[Gregg Lengling]

January 3, 2003 -- No, it's not your imagination - your cable-TV bill really is growing by leaps and bounds.
Average cable rates rose for the ninth consecutive year in 2002.

For the period covering last January through June, average cable rates rose 6.3 percent nationwide - way ahead of the consumer inflation rate of 1.1 percent, according to the Federal Communications Commission.

And there's no relief in sight - cable rates will keep on rising this year.

Cablevision, the area's biggest cable provider with 3 million subscribers, will raise its rates an average of 5.26 percent this year.

And Time Warner Cable, which services 1.2 million subscribers in Manhattan, most of Brooklyn, Queens and The Bronx, will raise its standard rates by more than 6.5 percent on Feb. 1 - a monthly jump of $36.19 to $38.57 in Manhattan alone.

And that's in addition to a 7 percent increase Time Warner announced in February of last year.

According to the FCC, which regulates the broadcast business, cable companies are explaining away their increases by saying they have to pay more for their programming, passing the increased cost on to their customers - that's you.

They're also justifying their rising rates by saying they're offering more expanded services, such as Internet access (Cablevision's Optimum Online, for example) and additional channels (with digital tiers).

According to the National Cable and Telecommunications Association, cable companies invested nearly $15 billion last year in system upgrades.

But watchdog groups, such as Consumers Union - which publishes Consumer Reports magazine - say costs have been more than covered by increases in advertising, pay-per-view services and cable-modem services.

And rising cable rates could be taking a toll on an industry that's been criticized for poor service almost from Day 1.

The FCC report says that, when all is said and done, cable companies could post a loss in the number of overall subscribers for the first time ever.

[Joseph S]

 

They're also justifying their rising rates by saying they're offering more expanded services, such as Internet access (Cablevision's Optimum Online, for example) and additional channels (with digital tiers).

Of course you can't pay for what you want. You have to pay for all the analog, digital, PPV, music, and 20+HBO/Showtime stations, and other junk just to get the HBO and Sho HD.

When will the FCC force them to let us pick and choose what we want?

[ReesR]

I received a 100% decrease in my cable bill last year.    Not bad eh?

[Joseph S]

 

I received a 100% decrease in my cable bill last year.  Not bad eh?

Me too! Until I got the Sopranos bug in Oct.  

[kjnorman]

I'm beginning to think that I may be dropping my cable service in the coming months as well.

The quality of service is just not there.

Kerry

[mr_yeti]

I'll probably be holding out until the Super Bowl, then cancelling my cable. It's not worth the hassle of trying to communicate with them, and watching the Giants-Niners game yesterday, the picture quality was absolutely atrocious.

[kjnorman]

Yep, I'll keep it for the superbowl, and i'll see what gets announce at the Comsumer Electronics Show this week.

I'm eager to see if the rumured HD DirectTivo is announced.  If it is and will be available by the summer, then it is goodbye TW, and I'll save my pennies for a bit.