Comcast is giving the gift of higher cable bills this holiday season.
Tens of millions of Xfinity customers will see their bills rise 3.6% nationwide, on average, the company said Thursday, as it boosts prices for broadband plans and hikes TV fees.
The Philadelphia-based media giant isn’t increasing promotional prices for TV packages, which are locked in at specific rates during the life of a contract. But Comcast is increasing fees for broadcast television, local sports, TV boxes, and remotes – charges that are often just a few bucks or less but together drive up the overall bill.
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 soon bill $12.70 for broadcast television, a 54% increase from the $8.25 imposed this year, according to notices on customer bills.
Comcast blames rising programming costs to carry content from local network affiliates and other broadcasters. Programming costs have more than doubled since 2006, from $5.5 billion to $13.2 billion last year, according to Comcast.
The company says it absorbs some of those costs, but 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 40%, or $5.8 billion, before nonoperational costs such as taxes and interest expenses.
Comcast is not alone in increasing fees this month: AT&T recently announced price hikes for DirecTV customers, and the streaming service Hulu + Live TV will jack up its monthly price by $10 next week.
But not all fee increases are for programming.
Comcast is also hiking rates to rent its equipment, notably its broadband modems, which will soon cost $14 a month, up from $13 this year. Fees for TV boxes will jump from $2.50 to $4.60. Even the remote will cost you a little more: 40 cents a month instead of 18 cents.
Comcast is boosting prices for broadband plans, too. The cost of Comcast’s Performance internet plan, with download speeds of up to 100 megabits per second, will rise to $77.95 from $74.95. A “Blast!” plan with up to 300 mbps of download speeds will be $97.95, up from $94.95.
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