As mentioned last week, Time Warner Cable customers in Orange County and Southern California are getting letters that cable TV prices are going up in 2010.
However, the company did not share specific prices because it said the increases vary by customer. Some won’t even see any increase until after their one-to-two-year contract expires.
I, a Time Warner customer, have not received the letter. But I’ve received specifics from readers about the increase. I noted some in last week’s post, “Time Warner Cable is raising rates in January 2010.”
Reader Bill C., a Time Warner customer in Garden Grove, sent in a copy of the notice he just received. Looks pretty straightforward. Click chart below right for larger view.
The quick analysis: Customers who order less will see a larger price increase.
Comparably, the increases are not as high as 2009, when most bundles went up $5 a month. The all-the-best bundle will go from last year’s $114.95 to next year’s $122.99 per month. Meanwhile, the aforementioned ‘Broadcast Cable” is going from $14 last year to next year’s $20. Check out last year’s story on the increases: “Time Warner Cable raising prices in 2009”
Based on covering Time Warner for the past year, here are a few reasons why prices are increasing:
|More on 2010 price increases:
It’s a Catch 22 for Time Warner. The company continues to lose video customers each quarter so it must spread the cost of operating a cable TV company among existing customers.
At least the company continues to add more features, such as several new HD channels this year. Plus it is gearing up to offer its DVR customers a way to watch TV shows they forgot to record. The company is also working on TV Everywhere, which would allow existing customers to watch some of the same shows online at their leisure.
For those who haven’t been following my Time Warner stories, I should also mention that there is one way to avoid the price increase other than canceling cable altogether. Commit to a one- to two-year contract before the rate hike to get the price locked in for a length of time.
Right now, Time Warner’s best offer for TV, phone and 15 Mbps Internet service is $109.99 a month — or $10 off per month with a one-year commitment. A 2-year commitment drops the price to $104.99 per month. More details HERE.