Mediacom Communications_Rate AdjustmentsMediacom
November 8, 2011
Ms. Jeanne Schneider
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001 -4864
Dear Ms. Schneider:
RECEIVED
11 NOV 15 AFB 11 : 24
City C e ;; , Office
Dubu. u IA, IA
The purpose of this letter is to inform you that, on or about December 15, 2011,
Mediacom will be implementing the following rate adjustments: t
Product:
Old Rate:
New Rate:
Net Change:
Broadcast Basic
$ 26.15
$ 28.25
$ 3.15
Family Cable
$ 65.05
$ 70.30
$ 5.25
Family Cable with Digital
1 Star
$ 78.50
$ 79.05
$ 0.55
Cinemax
$ 10.95
$ 12.95
$ 2.00
Showtime
$ 10.95
$ 12.95
$ 2.00
Digital Plus
$ 12.00
$ 14.00
$ 2.00
Wireless Home
Networking
$ 2.95
$ 3.95
$ 1.00
Paperless Bill Credit
$ 1.00
Bill Credit
Eliminated
Credit No Longer
Available
The decision to make price adjustments is always a difficult one. As our Nation struggles
to pull itself out of what has been called the Great Recession, we recognize that these are
challenging times for the hardworking men and women living in the communities that we
serve. While we strive to keep expenses in check, there are some costs that we are
simply unable to control. Our programming expenses, particularly with respect to
broadcast television channels and live sports content, are escalating at a pace well in
excess of inflation.
The fees we pay to retransmit local broadcast stations like ABC, CBS, FOX and NBC are
by far our fastest growing programming cost component. Outdated federal laws give the
local broadcast stations monopoly power over network and syndicated programming
within their respective market areas. Over the past few years, many broadcasters have
used their monopoly powers to demand 100 %, 200% and even 300% rate increases
during contract negotiations. This has driven up cable and satellite rates and forced
American consumers to pay billions of dollars for "free" over- the -air television.
1 Customers currently on promotional rates will not receive this rate change until the expiration of their
respective promotional period.
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. Fox and Telemundo bought the
rights to broadcast the 2018 and 2022 World Cup in the U.S for $1 billion. Comcast/NBC
Universal agreed to pay $4.38 billion to televise four Olympic Games through 2020.
ESPN renewed its rights deal with the NFL for Monday Night Football, agreeing to pay
over $15 billion for eight years, or 70% more than it currently pays. These are just few
examples of the unrestrained spending that has become the hallmark of the sports
programming business.
Contrary to public perception, cable companies are reluctant to raise video prices because
when we do, we lose subscribers. Mediacom does not make more money when we raise
video rates, since we remit virtually every penny of the increase on to the programmers.
In fact, over the last three years, our programming cost increases were more than double
our video revenue increases.
Since the programming community has been unwilling to exercise even the slightest
measure of self - restraint when it comes to reigning in their spending or increasing their
price demands, Mediacom has taken the fight to Washington. We have asked the Federal
Communications Commission and Members of Congress to protect senior citizens, low -
income households and rural residents from practices that are rendering pay television
unaffordable for more and more Americans. We invite the leaders of your community to
do the same.
Despite the business challenges we face, Mediacom appreciates the opportunity to
continue to serve your community's telecommunications needs. If you have any
questions, please contact me directly at 319 - 268 -5033 or grassley(4mediacomcc.com .
Yours sincerely,
e'3.t 4"Ai-hr
Lee Grassley
Senior Manager, Government Relations