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Mediacom Communications Company Copyright 2014 City of Dubuque Consent Items # 4. ITEM TITLE: Mediacom Communications Company SUMMARY: Correspondence from Mediacom Communications Company advising the City of a programming additions and rate adjustments on or about January 15th. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type 0 Mediacom Correspondence Supporting Documentation Me d i a`&o ,• ft Int© �,. December 15, 2014 Mr. Kevin Firntahl City of Dubuque I 50 W. 13th Street Dubuque, Iowa 52001-4864 Dear Mr. Firntahl: We are writing to notify you that due to increased wholesale programming charges, the standard rate for HBO will be increasing from $to $1 on or about January 15, 2015. Please feel free to contact me should you have any questions at 319-395-9699 ext. 3461 or e-mail Igrasslev@mediacomcc.com. Sincerely, .�� Lee Grassley Senior Manager, Government Relations 6 Mediacom Communications Corporation 6300 Council St. NE • Cedar Rapids, IA 52402 • 319-395-7801 • Fax 319-393-7017 II e a - t P*WV to s December 12, 2014 Mr. Kevin Firntahl City of Dubuque 50 W. 13th Street Dubuque, Iowa 52001-4864 Dear Mr. Firntahl: The purpose of this letter is to inform you that, on or about January 15, 2015, Mediacom will be implementing the following rate adjustments:' Product: Old Rate: New Rate: Net Change: Local Broadcast $3.53 $4.34 $0.81 Station Surcharge Regional Sports $1.83 $2.03 $0.20 Surcharge The decision to make price adjustments is always a difficult one. We are very reluctant to raise video prices because, when we do,we lose subscribers. However, cable and satellite companies are constantly being pressured by the programmers we buy from to pay more for the channels we carry. The fees we pay to retransmit local broadcast stations like ABC,CBS, FOX and NBC are by far our fastest growing programming cost component. As Federal Communications Chairman,Tom Wheeler, noted,the cost of carrying local broadcasters "has skyrocketed from $28 million in 2005 to$2.4 billion in 2012, a nearly 8,600 percent increase in seven years."A Wells Fargo analyst recently predicted this number could jump fivefold to $12 billion annually by 2019. The problems with sports programming are equally as alarming. One look at the skyrocketing rights fees announced with recent deals and it is easy to see that the marketplace for live televised sports is out of control. Broadcast networks and national and regional sports networks are shelling out billions of dollars for the rights to carry pro sports like the NFL, NBA, MLB and NHL, the Olympic Games,World Cup and NCAA football and basketball games. Unrestrained spending has become the hallmark of the sports programming business, and the American consumer,whether a sports fan or not, is left to pay the price. 1 Depending on the terms of their contract, certain customers on promotional rates may or may not receive this rate change at this time. i Mediacom Communications Corporation 6300 Council St. NE • Cedar Rapids, IA 52402 • 319-395-7801 • Fax 319-393-7017 c In an effort to bring more transparency to the unjustified fee increases being taken by the owners of broadcast and sports television channels, Mediacom previously introduced a Local Broadcast Surcharge and a Regional Sports Surcharge. By identifying the cumulative fee increases being taken by these channel owners,we hope to draw the attention of consumers and their elected representatives to this rapidly escalating problem. Greater transparency is only part of the solution,though. Recognizing that many consumers are frustrated by the current state of affairs in the video marketplace, Mediacom filed a petition on July 21, 2014, asking the Federal Communications Commission to adopt new rules that would allow expensive channels to be sold a la carte, create options to purchase channels on an unbundled basis, ensure consumers have access to free online video content, and prevent unjustified wholesale price discrimination (see https://mediacomcable.com/site/about news 25 07 2014.html). We also maintain a website, www.mediacomonyourside.com,to help educate consumers about programming cost issues. Despite the business challenges we face, Mediacom appreciates the opportunity to continue to serve your community's telecommunications needs. If there are any questions please contact me at 319-395-9699 ext. 3461 or via email at IRrassiey@mediacomcc.com Yours sincerely, Lee Grassley, Senior Government Relations Manager i I I i I' i a C i