Spectrum cable TV prices are on the rise
ALBANY — Spectrum cable service is increasing several of its fees next month, with the cost for most consumers increasing by about $5, according to the company.
For those with phone and TV service, as well as multiple set-top boxes, however, that could go up an extra $15.
Invoices issued this month in the Capital Region included a notice that “the television broadcasting surcharge will increase by $3.01; the price of each receiver (cable box) will increase by $1; and the phone service, Spectrum Voice, will increase by $2.”
The TV Bundle plan, in which customers can combine cable TV, Internet or phone costs, is also increasing by $6 per month.
The prices individuals pay vary depending on the services they choose and when they signed up.
For many users with a standard internet and cable plan, monthly rates can easily exceed $100 per month, including taxes and other fees.
Spectrum spokeswoman Lara Pritchard said one of the main reasons for the increase is that “television programmers continue to increase fees every year to deliver their content, resulting in higher costs in the whole industry”.
“As a direct result of the increasing cost of programming from the television networks we carry, we pass those increased costs on to viewers,” she said.
However, customers on promotional plans will not see the increase until their promotional period ends.
Cable officials note that local programming costs, or what local stations charge cable companies to carry their content, have risen sharply.
These fees since 2010 have increased by more than 850%, from $1.3 billion to $12.4 billion nationwide in 2021, according to SNL Kagan, a company that tracks information sectors, media and entertainment.
Streaming content providers also regularly raise prices. For example, Netflix’s standard monthly rate in the US has increased by about a third since 2019 and is now $15.50 per month.
By federal law, cable companies are required to reserve a certain number of channels for local broadcasters, who then charge them a license fee. Additionally, high-demand offering networks, like ESPN, frequently bundle their offerings to cable companies, which means cable companies may have to carry — and pay for — less popular packages. These costs are also passed on to consumers.
The exact cost charged by broadcasters and cable networks is not made public. But disputes between networks/broadcasters have occasionally erupted, leading to “blackouts” when a particular station or network may be unavailable until the two sides agree on a price.
According to the American Television Alliance, cable companies have been hit with 461 broadcaster-forced blackouts, an 800% increase since 2010.