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Comcast is raising cable rates
By Dale Kasler -- Bee Staff Writer
Published 2:15 am PST Thursday, November 25, 2004
Comcast Corp. is raising cable television rates in the Sacramento region, arguing that the increase is justified by the millions of dollars the company has spent on upgrading technology, adding new services and developing the new sports channel featuring the Kings.
The Sacramento area's largest cable company said Wednesday the price for its most popular package of channels, the 71-channel standard service, will increase an average of $2.76 a month, to $48.12, in its franchises in the region.
Sacramento County customers will see a $2.51 increase for standard service, to $48.25. That includes rental of the cable converter box used by most subscribers. Sixty percent of Sacramento's Comcast customers buy the standard service.
The new rates take effect in January.
The increases come at a time when satellite dishes and other technologies continue to make inroads on cable operators. But while another round of rate hikes might prompt some of Comcast's 350,000 Sacramento-area consumers to switch to a dish, industry analyst Jimmy Schaeffler said cable firms can placate many by pointing to improvements in programming and service.
"It's not just a case of greed, greed, greed anymore," said Schaeffler, chairman of The Carmel Group consulting firm in Monterey. "The churn, or loss of subscribers, is going to be less."
Comcast said there will be rate increases of $1 to $3 for some of its other services as well, including some digital and Spanish-language packages. It also will charge more for installation and other customer-service chores.
Some products won't change in price, however, including premium channels for nondigital customers. Comcast said its 27-channel limited-basic service - the only service still subject to price regulation - will stay at $12.01 a month.
The price for Comcast's high-speed broadband Internet service won't change, either, said company spokeswoman Susan Gonzales.
Schaeffler said satellite is a better buy in most markets, when it comes to the price paid for pure TV programming. But cable has some advantages. Its technology allows it to offer interactive services like "video on demand," which lets viewers watch movies and other programs whenever they want, he said.
Gonzales said the rate hikes reflect $60 million spent by Comcast in the past year to upgrade technology and customer service and to increase the availability of high-definition programming and video on demand.
The money also has gone for new programming like Comcast SportsNet West, the new sports channel built largely around Kings broadcasts. In all, the regional channel, which began Nov. 2, will broadcast 52 regular-season Kings games. It also will show the games of the Kings' sister team, the Monarchs. Financial terms between the Kings and Comcast have not been disclosed, nor have Comcast's deals with other cable TV systems or with the satellite TV networks Dish Network and DirecTV.
Gonzales compared the rate increases to the cost of a kid's meal at a fast-food restaurant. "The customer still gets a great value," she said.
It remains to be seen how much higher rates can go before customers rebel. The standard service has roughly doubled in price in the past decade, although Comcast officials say programming has been enhanced during that time.
Schaeffler said cable still has the lion's share of the U.S. households that subscribe to a multichannel TV service, but satellite has grabbed some 25 percent of the market.
And more rivals are on the way; the phone company is getting into the TV business.
SBC Corp. announced a $4 billion plan Nov. 11 to offer TV and broadband Internet service to its telephone customers starting next year. It expects to make its service available to about half its 36 million telephone customers by 2007. It's not clear how soon SBC's service would start in Sacramento.
SBC would join a growing group of rivals for Comcast that includes Roseville-based SureWest Communications. Rich Esposto, executive director of the Sacramento Metropolitan Cable Television Commission, said Sacramento may be on the verge of having enough TV providers to see price wars. "I'm anxious for the day when there's true rate competition," he said.
By Dale Kasler -- Bee Staff Writer
Published 2:15 am PST Thursday, November 25, 2004
Comcast Corp. is raising cable television rates in the Sacramento region, arguing that the increase is justified by the millions of dollars the company has spent on upgrading technology, adding new services and developing the new sports channel featuring the Kings.
The Sacramento area's largest cable company said Wednesday the price for its most popular package of channels, the 71-channel standard service, will increase an average of $2.76 a month, to $48.12, in its franchises in the region.
Sacramento County customers will see a $2.51 increase for standard service, to $48.25. That includes rental of the cable converter box used by most subscribers. Sixty percent of Sacramento's Comcast customers buy the standard service.
The new rates take effect in January.
The increases come at a time when satellite dishes and other technologies continue to make inroads on cable operators. But while another round of rate hikes might prompt some of Comcast's 350,000 Sacramento-area consumers to switch to a dish, industry analyst Jimmy Schaeffler said cable firms can placate many by pointing to improvements in programming and service.
"It's not just a case of greed, greed, greed anymore," said Schaeffler, chairman of The Carmel Group consulting firm in Monterey. "The churn, or loss of subscribers, is going to be less."
Comcast said there will be rate increases of $1 to $3 for some of its other services as well, including some digital and Spanish-language packages. It also will charge more for installation and other customer-service chores.
Some products won't change in price, however, including premium channels for nondigital customers. Comcast said its 27-channel limited-basic service - the only service still subject to price regulation - will stay at $12.01 a month.
The price for Comcast's high-speed broadband Internet service won't change, either, said company spokeswoman Susan Gonzales.
Schaeffler said satellite is a better buy in most markets, when it comes to the price paid for pure TV programming. But cable has some advantages. Its technology allows it to offer interactive services like "video on demand," which lets viewers watch movies and other programs whenever they want, he said.
Gonzales said the rate hikes reflect $60 million spent by Comcast in the past year to upgrade technology and customer service and to increase the availability of high-definition programming and video on demand.
The money also has gone for new programming like Comcast SportsNet West, the new sports channel built largely around Kings broadcasts. In all, the regional channel, which began Nov. 2, will broadcast 52 regular-season Kings games. It also will show the games of the Kings' sister team, the Monarchs. Financial terms between the Kings and Comcast have not been disclosed, nor have Comcast's deals with other cable TV systems or with the satellite TV networks Dish Network and DirecTV.
Gonzales compared the rate increases to the cost of a kid's meal at a fast-food restaurant. "The customer still gets a great value," she said.
It remains to be seen how much higher rates can go before customers rebel. The standard service has roughly doubled in price in the past decade, although Comcast officials say programming has been enhanced during that time.
Schaeffler said cable still has the lion's share of the U.S. households that subscribe to a multichannel TV service, but satellite has grabbed some 25 percent of the market.
And more rivals are on the way; the phone company is getting into the TV business.
SBC Corp. announced a $4 billion plan Nov. 11 to offer TV and broadband Internet service to its telephone customers starting next year. It expects to make its service available to about half its 36 million telephone customers by 2007. It's not clear how soon SBC's service would start in Sacramento.
SBC would join a growing group of rivals for Comcast that includes Roseville-based SureWest Communications. Rich Esposto, executive director of the Sacramento Metropolitan Cable Television Commission, said Sacramento may be on the verge of having enough TV providers to see price wars. "I'm anxious for the day when there's true rate competition," he said.
