Comcast Raising Rates

Comcast raising rates has become an annual occurrence, but this year’s rate hike will hurt even more for an estimated 25 million cable TV customers. Yes the nation’s largest cable company is at it again, with the news that Comcast is hiking subscription fees, movie channel rates, and even monthly rates on its DVR service.

The Comcast rate increase will be the third since January 2007. Cable and satellite TV companies have traditionally raised rates early in the year, but Comcast’s latest hike is the second time in a row they have bumped prices in November. Just think of the rate increase as your election year bonus!

This years rate increase looks to be in the area of 3.5% to 6% for a variety of features and services. While every region served by Comcast has slightly different pricing, here is sampling of what the rate increase will look like in one area served by Comcast.

As mentioned, the rate increase will kick in on November 1^st. Comcast’s Standard Cable, which is what most folks would consider the basic cable package in one area pay $54.30 a month. This will jump $3.70 and these subscribers will now pay $58. The Expanded basic service which is now $36.30, will rise $1.75 and now cost $38.05. Limited basic service which has just a few channels will go up $1.95, from $18 to $19.95 per month.

Customers using Comcast’s Digital Video Recorder, or DVR service will not like the latest price increase. That service will be hiked $2 per DVR, going from $13.95 to $15.95 per month, and increase of 14.3%. Of course Comcast is counting on the fact that once you begin using a DVR, its almost impossible to go back to watching TV in the traditional manner. The Comcast rate increase applies to each DVR the customer has, not just the first one.

Letters notifying customers of the rate hike began to hit mailboxes late last week. No doubt the Comcast rate hike is partly due to economic conditions.  Comcast is feeling the pressure most businesses are dealing with, namely higher fuel prices and health care costs for employees. In addition, Comcast is citing higher programming costs including sports programming. Reading between the lines, Comcast is laying blame at the feet of the Big Ten Network, a regional sports channel that Comcast did not carry in the past. Comcast really had no choice in carrying the BTN, otherwise it would have faced another year of subscriber losses to DIRECTV and DISH Network, satellite TV providers that both carry the Big Ten Network. However, Comcast still does not carry the NFL Network on its basic cable tiers, collecting an extra fee from subscribers that want the all-NFL channel.

The Comcast rate increase will hit subscribers across the nation. Comcast holds cable franchises in some of the most populated cities including Chicago, San Francisco, New Jersey, Philadelphia, Atlanta and Denver. Other regions serviced by Comcast include Michigan, Washington State, Maryland, Florida, California and Pennsylvania.

No word on if  DIRECTV or DISH Network will increase prices in 2009. DIRECTV increased rates on its packages in early 2008, and DISH Network did as well on some packages, while promoting a rate freeze on other packages. With current economic conditions, however, expect most cable and satellite TV companies to closely match Comcast’s raising rates.