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Canadian Netflix Rate Increase: Up $3 to $13.99/Month for Standard Plan

Phillip Dampier November 29, 2018 Canada, Competition, Consumer News, Online Video No Comments

Canadian Netflix subscribers will pay up to $3 more a month in the coming weeks for streaming video as the company raises prices to produce more original Canadian content.

The latest rate increase is the largest ever for the service in Canada.

New Rates for Netflix Canada

  • Netflix Basic increases $1 to $9.99 a month. No 4K video and one-stream only
  • Netflix Standard increases $3 to $13.99 a month. No 4K video and up to two streams at a time viewing
  • Netflix Premium increases $3 to $16.99 a month. Includes 4K ultra HD video and up to four streams at a time viewing

The new rates take effect today for new customers. Existing customers will be notified by e-mail about the rate increase and when exactly it will be applied to their account.

Netflix Canada has taken over distribution of the long running mockumentary filmed in Nova Scotia.

The last rate increase in 2016 raised the price of Netflix by $1.

Netflix Canada spent $3.3 billion on original content in 2017. That is more than any of Canada’s English language commercial networks or broadcasters spent on scripted productions. Netflix also films many of its original productions in Canada, which is less expensive than many American filming locations.

Netflix Canada appears to have found a formula that works for the streaming service: participating in co-productions with entities like the CBC (at least for English productions) and asking subscribers to pay more to cover the company’s costs. This has spared Netflix from having its service subject to the federal GST, which would come out of subscribers’ pockets.

The company has had a much more difficult time dealing with the provincial government in Quebec, which protested loudly that Netflix Canada failed to make specific French language content commitments. As a result, Quebec has slapped its 9.975% sales tax on Netflix and all other streaming services.

Canada is gradually catching up to the United States in cord-cutting options. Netflix Canada’s offering is just a few hundred titles behind Netflix’s catalogs in the United States and Japan.

Other services have entered Canada in the last year or so, including CBS’ All Access, Acorn TV, and BritBox.

In response, Canadian broadcasters and telecom companies are beefing up their own services, which include CTV Movies/CTV Vault and Citytv Now/FX Now (which are only for authenticated cable/satellite subscribers) and Bell’s Crave TV (which just launched CraveTV+, offering more movies and original HBO shows).

Happy Holidays from Comcast: Your Bill is Going Up!

Phillip Dampier November 27, 2018 Comcast/Xfinity, Consumer News 2 Comments

Comcast’s Cyber Monday promotions failed to include in its advertised prices up to $31.25 in monthly surcharges.

Comcast will use two mandatory surcharges to hike cable TV customers’ rates on Jan. 1, including those on promotional or fixed contract pricing, while also raising the optional modem rental fee to a record $13 a month — a new industry high.

  • Broadcast TV Surcharge (varies per market) will increase to $10.00 a month.
  • Regional Sports Network Fee (varies per market) will increase to $8.25 a month.
  • Most customers will see an increase of about $3.75 a month for cable television.
  • The modem rental fee, shown on the bill as “Internet/Voice Equipment Rental” will increase $2, to $13 a month.

Cord Cutters News first reported the rate increases. Ars Technica noted Comcast raised the broadcast TV fee from $6.50 to $8 and the sports fee from $4.50 to $6.50 about one year ago, making these two mandatory surcharges a lucrative source for extra revenue. Comcast does not waive these fees (or future increases) for its cable TV customers, even those on new customer promotions. The company boosted modem rental fees $1 a month in 2017. Now it wants an extra $2, but customers can easily avoid that fee by buying their own cable modem, which will quickly pay for itself.

Comcast typically raises rates in different cities over the course of a year, so only some customers will experience the rate increase on Jan. 1, but by the end of 2019, all Comcast customers will see a higher bill.

The use of surcharges to implement hidden rate increases is controversial. Comcast and other cable companies can and do advertise their services without including increasingly steep surcharges and fees, which can dramatically raise the bill far beyond what companies advertise.

A typical Comcast customer offered a 2018 Cyber Monday bundle of television and internet, advertised for as little as $49.99 a month, would pay an additional $31.25 a month in surcharges, not including an additional outlet service fee if a customer wants to watch on one more than television set.

Spectrum Raises Price of “Everyday Low Priced Internet” to $24.99

Charter Communications, which does business as Spectrum, has raised the price of its legacy “Everyday Low Priced Internet (ELP),” a 2/1 Mbps service that Time Warner Cable introduced in 2013 for $14.99 a month. Our reader Todd writes the service is going up another $5 a month (after an earlier $5 rate increase) effective in November 2018, as his latest bill shows:

At Spectrum, we continue to enhance our services, offer more of the best entertainment choices and deliver the best value. We are committed to offering you products and services we are sure you will enjoy. Important Billing Update: Effective with your next billing statement, pricing will be adjusted for:

• Internet Services from $19.99 to $24.99.

New York residents were allowed to keep ELP at the price of $14.99 a month for several years after Charter’s acquisition of Time Warner Cable. But that deal requirement has since expired.

Spectrum continues to offer its income-qualified Spectrum Internet Assist ($14.99) for those receiving:

  • The National School Lunch Program (NSLP); free or reduced cost lunch
  • The Community Eligibility Provision (CEP) of the NSLP
  • Supplemental Security Income ( ≥ age 65 only)

That service is also promoted in mailers in low-income neighborhoods without an income or benefit pre-qualification requirement, so anyone in those neighborhoods can sign up.

Spectrum Internet Assist offers:

  • High-speed 30/4 Mbps Internet with no data caps
  • Internet modem included
  • No contracts required
  • Add in-home WiFi for $5 more per month

Offer not valid for current Spectrum Internet subscribers.

At a new price of $24.99, Spectrum is clearly trying to convince customers still hanging on to the very low-speed internet product Time Warner Cable originally introduced five years ago to move on. Time Warner marketed ELP to budget conscious DSL customers willing to accept lower speed for a lower bill.

Spectrum’s latest promotions for 100-200 Mbps Standard internet start at $29.99 a month for up to two years, depending on your service area and local competition.

Updated 11/6 4:56pm ET: Thanks to our readers for some clarifications:

  • New York customers may not be subject to the rate increase. Existing ELP customers in N.Y. can keep ELP until at least May 17, 2019, as long as they do not make changes to their account that would result in their enrollment being canceled.
  • In former Maxx areas and under some other circumstances, ELP is 3/1 Mbps.

Charter Spectrum Refuses to Air Political Ad Slamming Spectrum for High Rates

Brindisi’s ad has been “censored” by Charter Spectrum.

A Democratic candidate running for Congress in central New York cannot get his 30-second ad slamming New York’s biggest cable company on Spectrum’s cable channels.

Anthony Brindisi slammed Charter Communications for “censoring” his campaign by refusing to air his latest ad which claims Spectrum has almost doubled its rates since taking over for Time Warner Cable and has broken its promises to the state. Brindisi also accused his Republican opponent — incumbent Rep. Claudia Tenney — of siding with the cable company, and “voted to give the company a $9 billion tax cut while they were raising our rates.”

The fact that Brindisi opens his ad claiming, “if you’re watching this ad on Spectrum cable, you’re getting ripped off,” may have been partly responsible for Charter’s refusal to air his ad.

“The ad did not meet our criteria,” said Maureen Huff, a spokesperson for Charter Spectrum.

Rep. Tenney

But the ad is not factually inaccurate, just hyperbolic. Many Spectrum customers complained about steep rate increases switching between their original Time Warner Cable plans and new plans offered by Spectrum. Some customers needed to upgrade to higher tier cable TV packages to keep channels they would otherwise lose and the company’s ongoing digital conversion convinced many customers they needed to rent set-top boxes for every television in their home, at a substantial cost.

Brindisi’s claim that “Claudia Tenney’s campaign is bankrolled by Spectrum,” is slightly misplaced, although Charter Communications has spent $5,000 on contributions to her campaign in 2017. In fact, Comcast is her third largest contributor, spending $12,900 on her campaign so far during the 2017-2018 election cycle. The Koch Brothers, a cable industry ally, comes in fourth.

Brindisi hoped to air his ads in the Utica and Binghamton markets through Spectrum, but will have to spend more buying time on over the air channels. He says he doesn’t like Spectrum’s stranglehold on local views aired on cable channels.

“It’s a scary precedent for them to be setting just because I’ve been a vocal critic of the company,” Brindisi told the New York Times. “I don’t think I should be precluded from informing the public about their practices here in New York State and letting people know that, at the same time they are raising your cable rates, they are a big beneficiary of the tax bill and a major supporter of my opponent.”

Watch the 30-second advertisement Charter Spectrum refused to allow on its cable channels. Anthony Brindisi is a Democratic candidate for Congress in central New York (30 seconds)

Not Without My Refund! N.Y. Assemblyman Demands Spectrum Issue Rebate Checks

Before Charter Communications is shown the door and exits New York (if Charter loses its anticipated legal action against the state), it should be required to issue refund checks to every subscriber in New York to make up for a series of broken promises.

State Assemblyman Anthony Brindisi (D-Utica) has sent a letter to Acting Attorney General Barbara Underwood and New York Public Service Commission Chairman John Rhodes demanding the cable company pay up before transitioning service to another provider.

Brindisi claims Charter’s Spectrum failed to provide promised internet upgrades, has not met its obligation to improve customer service, and is charging even higher rates than its predecessor, Time Warner Cable.

Brindisi is also concerned Charter’s required transition plan may well be redacted by the company. He wants the transition plan made public, with ample opportunity for New York residents to participate in a discussion about which cable company ultimately replaces Spectrum (again assuming the company loses its legal action).

Here is Brindisi’s letter:

Dear Ms. Underwood and Mr. Rhodes:

I am writing to you as a follow up to the order issued by the New York State Public Service Commission on July 27, 2018 to revoke the 2016 merger agreement between Charter Communications, Inc. doing business in New York as Spectrum, and Time Warner Cable, Inc.

This order is truly in the best interests of New York residents.  For two years, I have received  literally hundreds of emails, letters, and petition signatures from constituents who have endured frequent, often unexpected rate hikes, and who have watched flashy ads from Charter promising lightning-fast internet speeds, as they can barely pay bills or send emails through 1980’s-era infrastructure that has not been improved.

Brindisi

I am respectfully asking that you collaborate to work on a three-point plan that addresses concerns I continue to hear from Charter’s cable and internet customers, as well as from the employees who work for the company.  The following is my proposal for consideration by consumer and utility regulators:

Charter should provide reasonable compensation in the form of rebate checks to its customers who have received cable rate hikes significantly above the national average for cable rate increases, which was 5.8 percent from July, 2016 to July, 2017.

Customers with internet service from Charter who never received promised service upgrades should receive compensation in the form of rebate checks from the company.

Any company petitioning the PSC to pick up Charter’s internet, cable, and phone service should pledge to negotiate in good faith with unions representing workers, and should agree not to cut vitally needed pension and health care benefits for workers.

The rate increases Charter customers received shortly after Charter’s acquisition of Time-Warner’s system have been staggering.  One constituent in Utica was billed $91.92 for cable services in January, 2017—and in March, 2018, his bill was $129.26 for exactly the same service.  Another constituent from Rome told me that she paid $108 a month for cable, internet, and telephone service in May, 2016—about the time Charter took over for Time Warner.  By April, 2018, her bill was $200.  These are increases many times the national average, all under the guise of ‘expiring promotional packages’

These cable rate hikes are just as serious a problem for consumers as Charter’s failure to live up to its promises to upgrade its broadband.  Many of the consumers I have heard from are seniors on fixed incomes who depend on cable and internet for information and to communicate with family members.  They should be compensated for what clearly is blatant overcharging.

Thank you very much for all you are doing to protect New York consumers, and for your concern about this issue.  If you have any questions, please feel free to give me a call.

Sincerely,

Anthony Brindisi
Member of Assembly

(Thanks to Todd N., a regular Stop the Cap! reader, for sharing the story.)

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Recent Comments:

  • Dylan: Look at their prices. Absolutely ludicrous compared to many companies, especially Charter Spectrum. I pay $60 a month for 100/10 with unlimited data. ...
  • Paul Houle: For a long time communities have been frustrated in that they don't have any power to negotiate with cable companies. This town refused to enter into...
  • Ian S Littman: To be fair, you aren't wrong. Spectrum likely knows it won't have any competition for years in Lamar, so they'll quickly get take rates of >70% (re...
  • Ian S Littman: Are you in an area that can even get Spectrum service? Because in areas where they actually have to compete, they're actually pretty decent now. Yes,...
  • Ian S Littman: A more odd entry in that list is Chattanooga. The entire area has FTTH via EPB. Yet apparently folks can't swing the $57/mo starting price for 100 Mbp...
  • Ian S Littman: The issue here is that the NY PSC's threats have no teeth because, well, who will take over the cable systems if Spectrum is forced to sell? Either Al...
  • Bill Callahan: Phil, National Digital Inclusion Alliance just published interactive Census tract maps for the entire US based on the same ACS data. Two datapoints a...
  • Carl Moore: The idiots that run the cable companies must be also using drugs...a lot of people are cutting their cable services because of the higher rate and inc...
  • EJ: This will require a New Deal approach. Municipals need the ability to either be granted money or loaned money for broadband expansion. Until this is d...
  • Bob: I also got $1 increase for my 100/10 internet from Spectrum. A rep said it's for the speed increase that's coming in 2019. I complained that I was pro...
  • EJ: It makes sense to focus on wireless considering the government contract they have. The strange thing is they referenced fixed wireless in this article...
  • nick: Interesting how they conveniently leave out (Spectrum TV Choice) streaming service which is also $30/mo ($25/mo for the first 2 years)....

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