Mediacom Communications Company Copyright 2014
City of Dubuque Consent Items # 10.
ITEM TITLE: Mediacom Communications Company
SUMMARY: Correspondence from Lee Grasley, Senior Government
Relations Manager for Mediacom Communications
Company advising the City of rate adjustments and
programming changes effective on or about January 17
through February 7, 2016.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
MCC Letter 12/21/15 Supporting Documentation
MCC Letter 12/30/15 Supporting Documentation
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December 17, 2015
15 DEC 1 AM 11, 58
Cite Clerk's Office
Dubuque, A q
Mr. Kevin Firntahl
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001-4864
Dear Mr. Firntahl
11
The purpose of this letter is to inform you that effective on or about January 18,
2016, Mediacom will be implementing the following rate adjustments impacting our
a
video customers:7
Product: Old Rate: New Rate: Net Change:
Local Broadcast $4.34 $7.64 $3.30
Channel Surcharge
8l
Regional Sports $2.03 $2.37 $0.34
Surchar e9
j
The decision to make price adjustments is always a difficult one. However, cable
and satellite companies are constantly being pressured by the content companies
we buy from to pay more for the channels that we carry.
Over the last decade,the most aggressive channel owners when it comes to price
increases are the local broadcast stations like ABC, CBS, FOX and NBC. In fact, a
recent industry analyst report indicates that broadcast station owners have
increased the fees they charge to cable and satellite companies by an astounding
40% during each of the last 3 years.
Many of the channels that carry live sports have also been very aggressive in their
pricing practices. In recent years, professional teams and college conferences are
raking in huge amounts of money by selling off their TV rights to a growing number
of national and regional sports networks. As the games spread out over more
channels, the cost of delivering sports content continues to rise.
7 Depending on the terms of their contract, certain customers on promotional rates may or may not receive this rate change at this
time.
8 In some customer communications the Local Broadcast Channel Surcharge is referred to as the Local Broadcast Station Surcharge.
9 The Regional Sports Surcharge does not apply to customers that only subscribe to the Local Plus TV tier,as there are no regional
sports networks carried in that level of service.
l
h
In order to bring more transparency to the massive fee increases being taken by
local broadcast stations and sports networks, Mediacom instituted both a Local
Broadcast Channel Surcharge and a Regional Sports Surcharge over the last several
years. The Local Broadcast Channel Surcharge was previously equal to the fee
increases that the local broadcast stations in your market have demanded we pay to
them since the start of 2012, but now represents the entire cost of all the local
broadcast channels Mediacom carries in your market. The Regional Sports
Surcharge is equal to the increases that regional and certain other sports networks
in your market have demanded we pay to them since the start of 2011.
For over a decade, Mediacom has been aggressively pursuing legislative and
regulatory reforms to rules governing our Nation's wholesale video marketplace. By
providing specific information about the price increases being demanded by the
local broadcast station owners and sports networks,we ultimately hope to draw the
attention of consumers and their elected representatives to this rapidly escalating
problem. 7
i�
Despite the increasing wholesale cost pressures faced by our business, Mediacom
appreciates the opportunity to continue to serve your community's
telecommunications needs. If you have any questions, please contact me directly
319-395-9699 ext. 3461 or via email at 1 rg assley@mediacomcc.com
Sincerely,
O. t 4 Wt
I;
Lee Grassley,
Senior Government Relations Manager
1
33
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December 28, 2015 15 DEC 30 AIM g; 50
City Clel"kS Office
Dubuque, I
Mr. Kevin Firntahl
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001-4864
Dear Mr. Firntahl:
On or about January 17, 2016 Mediacom will be moving the Oprah Winfrey Network (OWM)
from the Kids and Variety package to Family TV. OWN will continue to be viewed on channel
203 after the change.
1
Additionally, on or about January 24, 2016 OWN HD will be launched on channel 679 HD Family
TV and QAM Channel 66.4.
Finally, on or about February 7, 2016 TVLAND HD will be launched on channel 692 HD Family TV
and QAM Channel 62.4.
If you have any questions, please contact me directly 319-395-9699 ext. 3461 or via email at
I rassley@mediacomcc.com
Sincerely,
Lee Grassley,
Senior Government Relations Manager
I
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