What Drives Business Cable TV Costs & Pricing?

Each year we negotiate with several television networks to provide the best value in TV programming. BendBroadband participates with other cable companies in a co-op buying group to amplify our buying power and get the best prices we can.

Despite the determined efforts of all video service providers, programmers and TV networks have once again imposed substantial fee increases on all cable and satellite providers. DirecTV, Dish, and nearly every cable operator in the nation will reluctantly raise rates for business and residential customers this year.

BendBroadband is not immune to this national struggle against programming cost inflation. This year, several of our most popular channels increased their carriage fees—these are the costs to BendBroadband to continue to broadcast channels to our customers—by 10% or more.

We understand the drastic impact an increase of this magnitude would have on your bottom line. We also understand affordability can’t come at the expense of losing the channels that help you leverage television service at your business. Therefore, this year, we’ve made several concessions in other areas of our business to reduce the impact of surging programming costs.

We want to assure you that we are committed to the economic growth and prosperity of this region, which includes fighting cost increased and—when possible—absorbing as much as possible by making the same tough economic decisions we all wrestle with to run efficient organizations. Over the years, BendBroadband has kept business video service rates as low as possible, even as the programming rates we pay to deliver service have risen dramatically. According to data from the FCC, average programming cost to all service providers on expanded basic services has risen 36% in just the last six years. [1]

If you are currently in a promotional contract term, your price will change at the end of the term specified in your contract. If you are not under contract for video services but receive a bundling discount on the services, the base rate increase will still be off-set by the discount rate you receive.

[1] Source: Table 3 Historical Averages 1995-2012 on page 9 of the Federal Communications Document DA 13-1319 “REPORT ON CABLE INDUSTRY PRICES” Released to the public on June 7, 2013.

 

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