Comcast raising rates; are TV Everywhere costs hitting basic cable users?
Cable TV giant Comcast has announced that it will increase broadband Internet monthly fees in Pennsylvania and California beginning Aug. 1, according to multiple published reports. The rate increase will average as high as 3.8% in California and 3.5% in Pennsylvania, and though Comcast raised its prices in some of the affected markets less than a year ago, it said the new increase reflects investments in new technology and broadband capabilities.
StreamingMedia.com’s Dan Rayburn, a consistent critic of TV Everywhere strategies, says it has more to do with Comcast’s Xfinity TV Everywhere offering:
“Comcast has been quoted as saying the rate increases are as a result of, “new technology, new features, additional programming, higher broadband speeds and improved customer service.” In other interviews, they have said the increase is to pay for “digital services” and someone I spoke with at Comcast, who didn’t want to be quoted for the blog, said the rate increases are helping to offset the costs associated with their Xfinity streaming service amongst other digital products… For those that think TV Everywhere is the future, it’s not. In the U.S. at least, consumers are not willing to pay for the service, in the current state, and cable companies can’t afford to offer a so called “free” service that they lose money on.”
Connected Planet’s take,
Dan O’Shea:
Video cord-cutting, according to recent studies by Parks Associates and Nielsen, remains a mythical beast, which makes the recent rush to TV Everywhere strategies all the more confusing and intriguing. Many service providers, but particularly Comcast, are aggressively fighting a monster they haven’t yet seen.
Meanwhile, as Rayburn contends and explains in illuminating detail, online video viewing may be more complimentary to their existing TV offerings than these providers believe and less of a new business opportunity for them.
Wasn’t the return on investment for development of TV Everywhere strategies supposed to be delivered in the form of customer loyalty that would come through tying free online content to existing subscription packages? Comcast competitors, particularly those that have not fully committed to TV Everywhere offerings, may want to make a note of that.
