Cablevision Will Raise Cable TV Rates 3.7% For 2010
30 October 2009 - 8:14AM
Dow Jones News
Cablevision Systems Corp. (CVC) said Thursday it will raise its
rates for cable television service by an average 3.7% for 2010.
The higher pricing will take effect over the next few months
depending on a customer's specific location and billing cycle.
Cable companies typically announce annual price increases at
this time of year in an effort to maintain or increase
profitability. This year's price hikes come as the industry is
losing customers due to the recession and increased competition
from telecommunications companies and satellite providers.
Cablevision's chief competitor, Verizon Communications Inc.
(VZ), raised the monthly price of its legacy FiOS TV Premier
package--which it stopped offering last year--by 21% on Oct. 1,
putting it in line with pricing of its new offerings, FiOS TV
Extreme HD and FiOS TV Essentials.
Cable companies have lost TV subscribers to Verizon and AT&T
Inc. (T), but they have grown their overall revenue by adding
Internet service and voice customers.
Standard pricing for Cablevision's high-speed Internet service
and its digital phone service will remain unchanged in 2010 for the
seventh year in a row.
The company says it provides cable television service to around
3.1 million customers in the New York metropolitan area. It has 2.5
million high-speed Internet customers and nearly 2 million phone
customers.
-By Nat Worden, Dow Jones Newswires; 212-416-2472;
nat.worden@dowjones.com