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State of the Screens

Comcast, DirecTV, Dish, Charter Set Rate Hikes for 2018

By January 6, 2018No Comments

Most of the major pay-TV providers are all set to raise prices in 2018.

Average % increase in pay-TV prices YoY:
1) Charter: ↑ 6–8%
2)
DirecTV: ↑ 3–7%
3)
Dish Network: ↑ 3–7%
4) Cox: ↑ 3–6%
5) Comcast: ↑ 2–3%

More. Cable Prices Have Risen Faster Than Inflation For Each Of The Past 20 Years

Why is this happening? 872K U.S. households dropped pay-TV in Q3–2017 alone which amounts to a 3% drop in the subscriber base. The networks are also raising the price that they charge the pay-TV providers to carry their channels.

Remember broadband. The majority of profit for Pay TV providers comes from selling broadband rather than the actual pay-TV service.

Flashback:
1) Cable operators need to raise standalone broadband to $80 to offset cord cutting, analyst says

2) The Average Cable TV Bill is Set to Exceed $140 by 2020

More. Surge Pricing: How Binge-Streaming Hits Your Electric Bill

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.