Why do TV prices increase?
Jan 21, 2021 | posted by Conner Williams
Eight multi-billion-dollar corporations own or control nearly 90% of channels. As they continue to use their size and power to demand more money, we work hard to keep costs under control.
There’s no denying that TV has gotten more expensive, for both TV providers and their members. But why exactly do costs increase every year? Why do members regularly see their bills go up? There are a number of reasons for the high cost of TV, and we want to make it a little easier to understand.
Local Station Broadcast Fees
Local station broadcast retransmission fees account for about 25% of the overall cost for EZVideo's mid-level channel tier. Like you, we feel the discomfort when local broadcast stations decide to raise their prices. Portland-area broadcast stations include KATU, KRCW, KOIN, KGW, KPTV, KPDX, and KUPN. Unfortunately, local stations choose to increase these rates at high levels each year.
Sports Broadcasting Rights
Sports games and shows are some of the most popular programs available, and the network executives know it. The price networks pay to air sports programming has caused basic cable and satellite TV bills to significantly increase over the past decade. Most professional sports entities bring in billions for broadcast and cable rights to air their games.
Most of the networks you watch are owned by eight corporations who, in turn, control the prices of the channels. To continue increasing their revenue, they often require that DirectLink and others carry their less-popular networks on specific package tiers as a condition of providing the most popular ones. In addition, they use their size and market power to demand higher fees for their programming. DirectLink has no choice but to adhere to the new prices or remove the channels.
Learn more about what DirectLink and other member-owned cooperatives are doing to keep prices as low as possible for TV subscribers at www.TVOnMySide.com.
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