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Rumored: Spectrum Plans to Raise Rates; Broadcast TV Fee: $16.45/mo

Phillip Dampier July 2, 2020 Charter Spectrum, Consumer News No Comments

Several Spectrum employees have contacted Stop the Cap! to let us know a rate increase is planned for Spectrum services that will raise rates for cable television customers beginning as early as next month.

The rate increase is expected to gradually be introduced starting in August, but we are not aware of any specific schedule, nor have we been able to confirm the increase directly with Charter Communications. If our information is accurate, this specific rate increase will not apply to internet-only customers.

The Broadcast TV Fee surcharge will increase $2.95/month to an unprecedented $16.45/month. Spectrum claims this fee covers the retransmission costs local broadcasters charge the cable company to carry their channels on the cable system. Spectrum breaks this fee out of the monthly cost of cable TV and places it as a separate line item on your bill. This also conveniently allows the company to pass through rate increases even if you are on a price-locked promotional pricing package typically offered to new customers. If you do not subscribe to traditional cable television but have signed up for one of Spectrum’s streaming TV packages like TV Choice, the Broadcast TV Fee will also increase $2.95/month, raising that surcharge to $8.95/month.

Spectrum also plans to increase the cost of its cable TV packages. Spectrum’s most popular TV Select package is expected to increase $1.50/month to $73.99/month. Customers on a promotional pricing plan will not see this rate increase until their promotional pricing expires. Customers bundling multiple products should expect discounts to reduce that cost a bit.

In comparison, streaming TV providers like YouTube TV have also been increasing rates this summer, but should still be cheaper than cable television because of the various surcharges and equipment fees cable operators charge.

YouTube TV Announces 30% Rate Hike: Now $64.99/mo for Streaming TV Package

Phillip Dampier June 30, 2020 Competition, Consumer News, Online Video, YouTube TV No Comments

YouTube TV has announced the addition of eight new Viacom-owned networks to their lineup, but has also passed along word the price is going up 30%, from $49.99 to $64.99/mo effective from Tuesday for new customers, Aug. 1 for existing customers.

Google last raised the price of the service in April 2019 when a YouTube TV subscription increased by 25% to $49.99.

Today we are also adding more of ViacomCBS’s family of channels to YouTube TV, which includes 8 of your favorites: BET, CMT, Comedy Central, MTV, Nickelodeon, Paramount Network, TV Land, and VH1.

To continue delivering the best content and service possible, we’re also updating our price for new and existing members to $64.99/month. Existing members will see these changes reflected in their subsequent billing cycle after July 30, 2020.

YouTube TV was widely perceived to be the best value streaming service combined with the best interface and feature set, including unlimited DVR service and the ability to share the service with up to six family members (up to three watching concurrently). The service has benefited from unfettered price hikes by its streaming competitors, notably AT&T TV Now (formerly DirecTV Now). But social media channels show customers are not thrilled about a $15 rate increase, even with the addition of eight channels to the lineup:

Hulu + Live TV Hiking Rates $10/Mo; Most Customers Will Pay $55 a Month for Live TV Streaming

Phillip Dampier November 18, 2019 Competition, Consumer News, Hulu, Online Video 1 Comment

Hulu + Live TV is celebrating its successful signup of over an estimated 2.7 million customers with a major rate increase the company says reflects the service’s true value in the marketplace.

Most customers will see their subscription price increase by $10 a month, from $45 to $55 a month.

“Today, we’re letting customers know that the monthly base price of Hulu + Live TV will increase to $54.99, beginning December 18,” the company wrote in a blog post. “The new price better reflects the substantial value of Hulu + Live TV and allows us to continue offering all of the popular live news, sports and entertainment programming included in the plan.”

Craig Moffett, a chief analyst at MoffettNathanson, told readers of his Cord Cutting Monitor quarterly newsletter that Hulu + Live TV, which combines Hulu’s on demand plan with a selection of about 60 streaming live TV networks, is likely America’s largest cable TV replacement service, topping Sling TV’s estimated 2.686 million customers.

Moffett also reported that cord cutting is becoming a more costly proposition.

“Eighteen months ago, the cheapest video packages for vMVPDs were clustered around $30 to $35 per month,” Moffett wrote. “Eighteen months later, most are in the $45 to $50 per month range, an increase of roughly 50%.”

SiriusXM Hiking Rates Nov. 13; Satellite Radio Monopoly Makes Rate Increases Easy

Phillip Dampier October 24, 2019 Competition, Consumer News, Public Policy & Gov't, SiriusXM 4 Comments

The satellite and app-based radio service SiriusXM has announced a broad-based rate increase for its customers that will take effect Nov. 13, 2019. Most customers will see a rate hike of $1 per month.

The company made the announcement with little fanfare, announcing the rate changes in private e-mails sent to customers.

Sirius and XM Radio used to be separate, competing satellite radio services. But in the waning days of the George W. Bush Administration, regulators approved a merger between the two entities after a 57-week review process, establishing a satellite radio monopoly.

The Bush Justice Department approved the Sirius and XM Radio merger on March 24, 2008, after being persuaded that satellite radio faced significant competition from traditional AM and FM radio, online streaming services, and the growing use of MP3 players. The FCC under Chairman Kevin Martin followed with a 3-2 approval on a party-line vote favoring the Republican commissioners. Martin said the internet delivered all the competition a combined SiriusXM could handle.

“The merger is in the public interest and will provide consumers with greater flexibility and choices,” Martin said of the merger at the time.

Martin’s predictions turned out to be largely untrue, as the combined company quickly merged into a single satellite radio service, began a series of rate increases, and faced the wrath of state attorneys general for its poor customer service and difficulty processing subscriber cancellations. For years as competing providers, Sirius and XM charged $12.99 a month, with substantial discounts for customers agreeing to multiple-month subscriptions. Lifetime subscriptions were also available. As of November 11th, the most popular subscription options — XM Select will cost $16.99/mo and XM All Access will cost $21.99/mo.

SiriusXM also now charges a range of fees customers may face:

  • Activation Fee: For each radio on your account, SiriusXM may charge a fee to activate, reactivate, upgrade or modify your subscription package.
  • U.S. Music Royalty Fee: Package pricing does not include the U.S. Music Royalty Fee, now 21.4% of the price of most audio packages which include music channels.
  • Invoice Administration Fee: If you request to receive a paper invoice, SiriusXM will charge you an invoice administration fee on each paper invoice rendered, except where prohibited.
  • Late Fee: If payment is not received in a timely manner, a late fee may apply.
  • Returned Payment Fee: If any financial institution or credit card refuses to honor your payment, a fee may be charged.
  • A La Carte Channel Change Fee: If you have an “A La Carte” Package, for each subsequent transaction to change your initial channel selections, you may be charged a fee.
  • Transfer Fee: If you transfer a Subscription from one radio to another you may be charged a transfer fee.
  • Cancellation Fee: Cancellation fees may be applied to Subscriptions activated in combination with a device purchased directly from SiriusXM.

SiriusXM customers can always get a much lower rate by threatening to cancel service. To cancel, call 1-866-635-2349 Monday through Friday 8:00 AM through 10:00 PM, ET, Saturday and Sunday 8:00 AM through 8:00 PM, ET. Tell the representative you are canceling because the service costs too much. You should be offered a retention rate of $30-35 for the next 5-6 months of service or around $60-100 a year (the lower end for Select, the higher end for All-Access). Just set a calendar reminder to repeat the cancellation threat a week or two before your retention rate is scheduled to expire and you can usually get that offer renewed. Note that the Music Royalty Fee will continue to be charged separately. A credit card is often required to get retention pricing, and service will automatically rebill at the prevailing rate after the promotional rate expires.

November 13, 2019 SiriusXM Subscription Rate Change

When will the subscription rates change? 

For packages that are impacted by the rate adjustment, the new subscription rates will be effective November 13, 2019. The new rates will apply to subscription purchases made on and after that date, or renewals of existing subscriptions that are processed on and after that date.

Which packages will be impacted by the rate change on November 13, 2019?

The standard monthly rates for Select, Select Family Friendly, All Access, All Access Family Friendly, Premier, Premier Family Friendly packages will increase. The standard monthly rates for A La Carte, A La Carte + Howard, A La Carte + Sports, A La Carte + Howard + Sports, and A La Carte Gold packages will increase.

The standard monthly rates for additional radios that are eligible for the Family Discount for these same packages will also increase.

By how much will the rates change?

The standard monthly rates for Select, Select Family Friendly, All Access, All Access Family Friendly, Premier, Premier Family Friendly packages, and A La Carte packages for a primary radio will increase by $1 per month. The standard rates for additional radios that are eligible for the Family Discount will also increase by $1 per month.

Which packages or plans are not impacted by the November 13, 2019 rate change?

The standard rate adjustment does not apply to the following packages: SiriusXM Premier Streaming, SiriusXM Essential Streaming, Mostly Music, News, Sports & Talk, Basic, Basic Plus, Español, Español Plus, MiRGE All-in-One, Traffic, and Travel Link, as well as Aviation weather packages.

My current subscription plan does not renew until November 13, 2019 or later. When will I be billed at the new rates?

You will be billed the new rate the next time your plan renews on and after November 13, 2019.

I have a plan for the Lifetime of my radio. Does the rate adjustment on November 13, 2019 impact the Lifetime plan?

No. Lifetime plans are not impacted by the rate adjustment.

Will the rate adjustment affect my trial subscription?

No. Trial subscriptions are not impacted by the rate adjustment.

I’m still on a trial subscription but I’ve already ordered a new subscription that will start when my trial subscription ends. Will you charge me the new rate?

If you have already purchased a Select, Select Family Friendly, All Access, All Access Family Friendly, Premier, Premier Family Friendly, or A La Carte package in a plan that will start when your trial ends (or if you purchase it before November 13, 2019), you will be charged the current rates for your first billing period, even if your trial does not end until after November 13, 2019. Then, whenever your plan bills again, you will be charged the new rates (or the rates in effect at that time) for those packages.

Examples:

If you chose a monthly billing plan to follow your trial, the first month will not be impacted by the adjustment. The new rates will apply to the second and subsequent months of your plan.
If you chose a quarterly billing plan to follow your trial, the first three months of your service will be at the current rates. You will not be billed at the new rate until your plan bills again (after the first three months).

Will the subscription rates for my ‘infotainment’ services from SiriusXM, such as traffic, Travel Link, Aviation, or Marine weather change on November 13, 2019?

The rates for traffic, Travel Link, and Aviation services will not change on November 13, 2019. The rates for Marine packages will change on November 13, 2019.

If I subscribe to one of the packages impacted by the rate adjustment, will you notify me before my subscription rate changes?

Yes, if we have valid contact information on your account, we sent or will send a notification to you by mail or email, before your plan bills or renews. This might be a good time to visit the Online Account Center to make sure your contact information is correct. If you have never before visited your online account, you will need to go through a short registration process before you can access your account.

When will the subscription rates for Marine weather change?

The new subscription rates will be effective November 13, 2019 for packages impacted by the rate adjustment. The new rates will apply to subscription purchases made on and after that date, or renewals of existing subscriptions that are processed on and after that date.

Which Marine weather packages will be impacted by the rate change on November 13, 2019?

The standard monthly subscription rates for all SiriusXM (Inland, Coastal, and Offshore), XM (Skywatch, Fisherman, Sailor, Master Mariner) and Sirius (Inland, Mariner, Charter) will increase.

How much will the rates change?

Effective November 13, 2019:

  • The standard rate for SiriusXM Marine Inland and Sirius Inland subscription packages will increase by $2 per month.
  • The standard rate for SiriusXM Marine Coastal and Offshore, XM Skywatch, Fisherman, and Sailor, and Sirius Marine and Charter subscription packages will increase by $5 per month.
  • The standard rate for XM Marine Master Mariner subscription packages will increase by $10 per month.
  • The standard rate for Sirius Marine Voyager subscription with Select, All Access, and Premier packages will increase by $1 per month.

My current Marine weather subscription plan does not renew until November 13, 2019 or later. When will I be billed at the new rates?

You will be billed the new rate the next time your plan renews on and after November 13, 2019.

Spectrum Raising Price & Speed Of Legacy ‘Everyday Low Price’ Internet

Time Warner Cable used to sell $14.99/mo slow speed internet. Spectrum agreed to grandfather the program for existing enrolled customers.

Charter Spectrum is raising both the speed and price of its legacy Everyday Low Price Internet package (ELP), formerly sold by Time Warner Cable.

Customers grandfathered on an existing Time Warner Cable ELP plan will see the following changes, reported by several of our readers, likely already in effect in some areas:

  • NY/NJ Customers: Speeds increased from 3/1 Mbps to 20/2 Mbps. Price increasing from $14.99/mo to $19.99/mo.
  • Other States: Speed increase to 20/2 Mbps. Customers will be notified of a $3 rate hike, bringing the new price to $27.99/mo.

A modem rental fee may also apply in most states, unless you use your own cable modem. Outside of New York and New Jersey, most legacy ELP customers have already experienced several gradual rate increases on this plan, which was originally sold nationwide for $14.99/mo. The first rate increase took most customers to $19.99/mo, followed by a rate increase last fall to $24.99/mo. Now Charter Spectrum has notified customers of another $3/mo rate hike, bringing the monthly rate to $27.99.

Stop the Cap! fought for and won a special concession for New York State residents as a consequence of the approval of the Time Warner Cable-Charter Communications merger. We requested the New York State Public Service Commission make the continued availability of price fixed ELP service a condition of the 2016 merger approval. The PSC agreed with us and made continued availability of the $14.99 service for at least three years part of the deal. That deal condition recently expired and Charter Spectrum is ready to raise the price of the service in New York and New Jersey, but also dramatically boost its download speed. New York and New Jersey residents will continue getting a substantial discount off the price Charter Spectrum charges elsewhere, at least for now.

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