Comcast raising prices for cable TV, internet
Company blames higher costs to carry local broadcast affiliates, sports networks
PHILADELPHIA — As if inflation and higher utility bills weren’t enough, Comcast is raising TV and internet prices starting in late December.
Tens of millions of Xfinity cable customers will see their bills rise 3% nationwide, on average, a company spokesperson said this week. Customers have received notices that price increases start Dec. 20.
The Philadelphia-based cable giant is increasing prices for some TV packages. The increases don’t affect promotional prices, which are locked in during the promotional period. But even if your promotion hasn’t expired, you’ll likely still pay more for TV service. That’s because Comcast is again hiking fees for broadcast television, local sports, cable boxes, and remotes — charges that are often just a few bucks more but together drive up the overall bill.
And as consumers increasingly rely on internet connections to work and study from home, Comcast is raising prices for broadband plans, too.
Two fees, in particular, have skyrocketed in recent years. The broadcast TV fee, a monthly charge for NBC, ABC, CBS, and Fox, was $5 in 2016. Comcast will charge Philadelphians $19.15 a month, a 17.5% increase from the current $16.30, according to a notice on customer cable bills.
The regional sports fee, the monthly charge for networks such as NBC Sports Philadelphia, was $3 in 2016. Under the new prices, Comcast will bill $12.70, up nearly 21% from the $10.50 charged today.
Comcast cited rising programming costs to carry content from local network affiliates and other broadcasters. Programming costs increased 7.6% during the last quarter, the company reported in October, and have doubled since 2006, from $5.5 billion to $13.5 billion in 2020.
The company says that it absorbs some of those costs but that the rest are passed on to consumers. In the most recent quarter, Comcast’s cable division, which includes TV, internet, and phone services, reported an adjusted operating profit margin of nearly 44% before nonoperational costs such as taxes and interest.
Comcast’s third-quarter profits doubled to $4 billion. Its cable unit now has 34 million customers.
Comcast — and the cable industry — isn’t alone in raising prices for live TV. In the last year, providers like AT&T and Sling TV have raised their monthly rates, too.
Not all Xfinity price increases are for TV programming. “Cord cutters” who fled pay TV will pay more for internet-only plans.
Comcast is also increasing fees to rent its equipment. For example, it will cost you an extra buck a month to use TV boxes and remotes, from $7.50 to $8.50.