Networks charge local TV providers, like All West, fees to carry channels, and these fees continue to increase each year. And in 2018, these price increases are some of the highest we have ever seen.
Notably, while we have had to drop content to keep our price steady, All West Communications has not passed along a rate increase to our customers since 2014.
To help provide some context, the following information was taken from a December 22, 2017 Variety article which demonstrates the annual increases that other companies are passing along to their consumers:
- Comcast is hiking monthly rates for most bundles about $5/mo.
- Dish is raising rates as of January 16, 2018, with most programming packages set to increase by $3 per month in addition to a $2 monthly increase for local channels.
- DirecTV’s Select package will go up $2 per month, while Entertainment is increasing $3; Choice will be $4 higher; Xtra will rise $7; and Ultimate and Premier tiers will increase by $8/mo.
- Charter bundles will see an increase of $10.
- Cox Communications, meanwhile, will raise rates January 7, with increases of 2.5%-6% depending on service package.
Many customers, due to the increasing rates, start to ask about buying “only the channels they watch” or a-la-carte TV. Here is just one example of what that might look like:
- HBO Direct: $14.99
- CBS All Access: $5.99
If we use these two channels as examples, we could assume that individual channels might be priced direct to a customer somewhere between $6 and $15 per channel. So, if there are ten channels you really care about and watch, you could potentially spend somewhere between $60 – $150 – just to get those ten channels. By bundling channels together, the networks provide better pricing through the traditional TV package model.
All West strives to provide you with the content you want at a price you can afford. And while not all costs are within our control, we work hard to limit the increases we have to pass on to you.