We strive to provide the best TV choices, at a value that makes sense for you and your family. With Network fees dramatically increasing and impacting your monthly bill, we wanted to give you a backstage pass to better understand the economics of the TV business.
All Cable and Satellite providers (TV providers) pay each Network owner (Programmer) a fee for every household that receives a particular Network - regardless of whether anyone in the household actually watches it.
These Network fees have increased dramatically at 3½ times the rate of inflation over the last 15 years1. Five media companies control 90% of the Networks, and while we strive to keep these costs under control, they continue to use their power to demand more money2. Programmers are securing long-term contracts with significant guaranteed Network fee increases, regardless of how many people watch.
This includes installation costs, maintaining and upgrading our network infrastructure and normal business expenses, such as employee salaries, rent and power. The bulk of this portion is used to build a better Internet and entertainment experience - including faster Internet speeds, superior reliability and more advanced services over our wholly owned, fiber-rich network.
While we have all moved on from 1990s technology; retransmission rules have not.Play Video
Carrying individual channels instead of a network owner’s entire “family of networks” is not an option. RCN is forced to carry ALL networks from a given network ownerPlay Video
Five multi-billion-dollar corporations own or control about 90% of existing TV networks. Their demands include huge fee increases.Play Video
2Ben Bagdikian, The Media Monopoly
in a Row
Reprinted from www.pcmag.com with permission. © 2016 Ziff Davis, LLC. All Rights Reserved.
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