Bracing for another Comcast rate hike
By ERIC STARK, Stark Ravings
Published Jul 17, 2011 00:09

I knew it was coming, and the two recent TV-rights deals only added to my concern. The question was when — not whether — our Comcast Cable rates would increase.

If this seems like an annual occurrence, it is. Rates have gone up every year for the past 17. The cable provider gives the standard response as to why: "increases in programming and business costs."

Funny, but when I read a cable rate hike of 3.3 percent was coming next month, I was actually relieved. This is the smallest cost spike in more than 12 years. Comcast raised rates 3.4 percent in November 2009. At the time, a Comcast spokesman said it was smallest overall rate increase in 10 years.

Consider us lucky. November 2008 brought a 6.8 percent rise. November 2007 saw a 6.9 percent bump. The biggest — 11.2 percent — came in March 2002.

Prices went up last summer as well. Aug. 1, 2010, rates increased 3.5 percent, which was on top of a 3.4 percent hike nine months earlier in November 2009.

Twelve months without an increase would be nice, but that's likely unrealistic. Not when NBC, owned by Comcast-NBC Universal, bids $4 billion for Olympics rights through 2020.

On July 3, Marvin Adams, editor of the Sunday News, wrote about the Olympics-coverage purchase in his weekly column: "How soon will we see that cost show up in our cable bills?"

Answer: two weeks (Aug. 1).

Yes, the cable giant makes a profit, but when networks make big buys for coverage rights, I know I will pay a price.

For instance, ESPN just paid for exclusive rights to Wimbledon tennis matches on TV in a new 12-year contract, ending a more than 40-year run of coverage on NBC. The price was not mentioned, but according to the Philadelphia Inquirer, NBC paid $12 million a year on the previous contract that started in 2007, so start the bidding there.

ESPN passes this purchase cost on to cable providers, such as Comcast and Blue Ridge Cable in our area, and to satellite companies. The enormous amounts for viewing rights drive up our prices.

Interestingly, someone pointed out to me that local media regularly report on cable-rate hikes but never mention similar increases for satellite companies. Good point. Satellite provider Dish Network had a hefty hike in February, increasing prices by as much as $5 for some services.

Maybe the heightened coverage for cable is because companies like Comcast serve about 24 million TV customers, more than 17 million Internet customers and more than 8 million telephone customers in 39 states. Comcast is the county's largest cable provider, with more than 100,000 subscribers here.

Staff writer Eric Stark discusses trends and tidbits in broadcast media each week in the Sunday News. Write to him at estark@lnpnews.com.

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