Time Warner Cable raising rates in Los Angeles
Time Warner Cable (NYSE: TWC) is raising rates on its programming packages and equipment rental fees on its Los Angeles system by as much as 17.6 percent.
The nation's second largest cable MSO, which signed a contract with the Los Angeles Dodgers this week that will reportedly cost it more than $7 billion, will hike the fee on its local broadcast basic tier by $3 monthly to $20, according to The Los Angeles Times. That's a 17.6 percent increase.
Time Warner Cable will increase the fee on its expanded basic programming package in Los Angeles by 8.2 percent to $72.50 monthly, and its DVR rental fee will jump from $10.95 to $12.99 monthly, an increase of 18.6 percent.
Time Warner Cable competes with Verizon's (NYSE: VZ) FiOS TV, AT&T's (NYSE: T) U-verse TV and DirecTV (Nasdaq: DTV) in Los Angeles. Its rivals will also likely increase the rates on their programming packages to help cover the increased cost of programming, including two new regional sports networks distributed by Time Warner.
Time Warner Cable said in a statement that more than two-thirds of its customers that bundle other products such as high-speed Internet and phone service with cable programming won't see a price increase, and that the average increase for video programming is just 3.5 percent for subscribers not in a bundle.
"As evident from recent media coverage, our industry has seen programming costs increase in double digits. Time Warner Cable has worked hard to keep our costs down and provide a wide range of choices for customers, and we have added new channels, on demand content, and HD offerings to our lineup," Time Warner Cable said in the statement.
- The Los Angeles Times has this story
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