Many Cox cable tv customers will be welcomed into the new year with a rate increase. The price increase, set to start in February 2008, affects customers who have enjoyed bundle package pricing from Cox. Those mainly targeted are customers who selected a bundle of phone, internet and cable tv for $99.95 a month in 2005 will see their bill increase $10 to $109.95.
The increase is expected to affect about 20 percent of Cox customers. Many dodged a rate increase when Cox raised rates on many cable subscribers but left bundle package pricing alone. According to Cox, about 32 percent of its customers currently subscribe to a bundle package.
Cox, like other cable tv operators has faced increased competition over the last year. Competition from satellite tv players DirecTV and Dish Network have continued to put pricing pressure on cable companies, along with new competition from phone providers AT&T and Verizon. Alternative pay television providers have made it increasingly difficult for cable tv companies to raise rates. At the same time, the costly rollout of HDTV programming has also cut into cable company profits.
Cox Communications is the third largest cable operater in the United States behind Comcast and Time Warner. Their largest markets include the Phoenix and Cleveland metropolitan areas and several large markets in California including San Diego, Orange County, Palos Verdes and Santa Barbara. They also have cable systems in Las Vegas Nevada, Louisiana, Georgia, Florida, Kansas, and Virginia.
{ 2 comments… read them below or add one }
Just received latest bill and needless to say I was very unpleasanty surprised. I never received notice of rate increase. It went up $9.75 for expanded basic.
Why are any of us paying such obscene rates to have a totally unacceptable amount of advertising and paid programming shoved down our throats? The networks that carry commercials and infomercials should pay enough to the cable, phone and satellite companies to cover all but the cost of premium services, don’t you think? If the water company teamed up with the sanitary district and started pumping toilet waste into our sinks and bathtubs, then tried to charge us for it, wouldn’t we scream?