Why is Arvig raising the monthly price for TV?
In 2017, we negotiated contracts with many major local television broadcasters including: ABC, CBS, FOX, MNT, NBC and The CW. As expected, these networks asked for sharply higher subscriber license fees paid to them for each Arvig subscriber per month. The negotiations were long and difficult. In the end, in order to continue carrying these channels and ensure you can continue to enjoy your favorite programs from these channels, we had to agree to their rate increase.
Due to this, you will see an increase between $3 and $8 per month on your television service, depending on service area and level, starting with the March 2018 statement.
How often are contracts negotiated?
Most contracts are negotiated in either a three or five-year cycle. However, the rate structure on almost all contracts include a yearly incremental increase on the fees we must pay to the content providers for each and every customer on a monthly basis.
Will my bill go up again next year?
Yes. It is very likely, come next year, that your bill will increase again. The contracts we sign are multi-year carriage deals, often requiring us to pay more each year for the remainder of our contract. Rising programming costs affect all providers, including Dish and DirecTV.
I pay a lot for my cable service. Can't you use that money to pay for this increase?
We absorb as much of these increases as possible, but in order to continue providing you with the service, we have to pass along some of the costs to our customers. Not only do we have to pay the carriage fees to the networks each month, but we also have to pay the employees who work daily to keep your service running, plus cover the expenses of equipment maintenance and upgrades to provide you with the best possible service.
Why can't I just pay for the channels I want?
Arvig is often required to “bundle” cable channels that are highly viewed with additional channels that are less popular. Programmers don’t only force us to pay for these channels, but they also tell us how we have to bundle them for our customers. We don’t think this is fair—and we know you don’t think it is either—but we typically have to agree to these terms in order to continue carriage of your favorite channels. We continue to explore ways to provide you the channels you want at an affordable price.