AT&T Sets 2011 Rate Hikes For U-verse TV

bicker

DTVUSA Member
#4
The most interesting thing to note, here, is how the increases are regressive: 10.2% for the lowest tier of service; 7.8% for the next-to-lowest; and smaller increases for the premium customers. This is yet-another example of consumer-facing companies recognizing that customers unwilling to spend a lot of money on your offerings are simply not worth as much as those that are, and that it is even worth perhaps pushing some of them over to the competition, by raising your rates on them, than trying to keep them by keeping rates lower.
 

Tim58hsv

DTVUSA Member
#6
The most interesting part of the article, at least to me is that "The price of AT&T's U-basic package, which includes only local TV broadcast stations, will remain unchanged at $19 per month."

Obviously that has a lot to do with competition...OTA competition that is.
 

n2rj

Moderator
Staff member
#7
Sarcasm on

Tim, they left the basic rate intact because they want to shed themselves of less profitable basic subscribers.

/sarcasm off

Actually I think they left the basic rates as is because they're regulated by the local franchise authority and they'd have to justify the increase.
 

MrPogi

Moderator, , Webmaster of Cache Free TV
Staff member
#8
$19 + tax is a lotta scratch for what you can get free OTA - and OTA delivers better quality AND more usable channels.

When the Digital conversion happened, Comcast ran a "promo" - basic cable for $10 a month. The ads were misleading and panic inducing: "Omygod, you are going to loose your free TV unless you spend a whole lot of money on a converter box and antenna and you'll have to climb up on your roof" or "Just call us and don't worry". A lot of older folks fell for it. The non-discounted price at the time for basic was $13 or so. The "promo" has since expired, and basic service here is priced at $18 - plus tax. So their "bait and switch" price doubled. Soon, though, there will be no analog cable and everyone will need a Digital Cable box, too. And how long do you think Comcast is going to let people have those boxes without a monthly fee?

Do you see a pattern here?
 
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