Peter Kafka

Recent Posts by Peter Kafka

Cable Rewards Cord Non-Cutters With a Bigger Bill

Even if cord-cutting is real, very few of you are actually going to do it. Your reward from the cable guys? A bigger bill in 2011.

That’s because the cable guys always raise their prices, year after year after year. It’s what they do. And the notion that some tech-savvy customers may be dropping their subscriptions in favor of some sort of Hulu/iTunes/Netflix broadband combo isn’t scaring them off.

The slightly less bad news is that it seems as if the price hike will be smaller than previous years’. But it will still be a hike. Bernstein Research’s Craig Moffett shows you how much more you can expect to pay depending on which company sells you your TV shows.

There are some caveats here. Because Moffett’s sample size is relatively small for Comcast and Time Warner Cable, those numbers could end up moving around. And the Dish Network hike looks a little bit outsized because the company has promised it will freeze rates for the two following years.

But the main takeaway doesn’t change: None of this looks like an industry convinced its customers are really heading out the door, or are about to in the next few years.


comments so far. Add yours.

  • http://www.marketingtactics.com/ davebarnes

    What they fail to understand is the concept of “tipping point”.

    Today, you have to:
    1. be a complete nerd
    2. be willing to give up certain channels
    3. live in a major metro area with lots of over-the-air TV stations
    to cut the cord.
    Tomorrow, it will be easier.
    At some point it will be easy. When that day arrives, many will do the deed. cf. telephone land lines.

    The cable companies should be cutting prices, in my opinion. Even if the price cut were nominal (1%), it would send a message that you don’t have to worry about “owing your soul to the company store”.

  • Anonymous

    I’d say cut the cord. The ara of expensive cable and ripp off will soon be over.

  • http://pulse.yahoo.com/_LIGEWYHRUXHRHZ7I63HXUCBKOA Katy

    Cut it a few weeks ago and am so mad at myself that I did not do it last year!! It is wonderful, I will never look back and do not miss a thing!

  • NF

    Go long. This stock is a “Block Buster”, Great leadership, great management team, great vision, great creativity, great innovation, great marketing, great product, huge customer base, great future.

  • Anonymous

    “The slightly less bad news is that it seems as if the price hike will be smaller than previous years’.” ??? Not in the Pacific Northwest. Frontier FiOS announced a 46% price hike for 2011!. (http://www.oregonlive.com/business/i…e_fios_ca.html)

    Cutting the cord is getting more attractive by the second.

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