2. Mediacom Rate Adjustment Memo dated November 20, 2017Mediacom
Theresa Sunde
Senior Manager, Government Relations
Via Certified Mail
November 20, 2017
Dear Chanhassen City Official:
The purpose of this letter is to inform you that, on or about January 1, 2018, Mediacom will be
implementing the following rate adjustments:
Product:
Old Rate:
New Rate:
Net Change:
Local Broadcast
Station Surcharge'
$8.08
$11.18
$3.10
Regional Sports
Surcharge
$3.73
$4.58
$0.85
Family TV
$74.95
$78.49
$3.54
HD DTA
$2.99
$3.99
$1.00
SD DTA
$1.99
$3.99
$2.00
DVR Service
$10.95
$14.99
$4.04
Standard Installation
Fee
$49.99, $74.99 or
$99.99
$99.99
Varies
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. All told, the fees charged by broadcasters, according to
SNL Kagan, grew from $800 million to $9.3 billion annually or 1063% between 2009 and 2017.
The problems with sports programming is 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 the NFL, NBA, MLB, NHL, the Olympic Games, World Cup and NCAA football and
basketball.
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.
' Mediacom bills monthly in advance. As a result, the increases for both the Local Broadcast Surcharge
and Regional Sports Surcharge are based on our best estimate of the cost increases our company will
incur for broadcast and regional sports programming. Mediacom will "true up" customer bills in a
subsequent month if it turns out that our estimate was too high or too low.
fil
Mediacom
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.
Despite the challenges we face, Mediacom has continued to aggressively invest in the communities we
serve. As part of a 3 -year, $1 billion capital investment plan announced in 2016, Mediacom has been
aggressively installing the newest generation of broadband technology throughout its entire internet
service territory. As a result, virtually all of the 3 million homes and businesses across our 22 state
footprint now have access to 1 Gig broadband speeds.
In addition, Mediacom has broadly launched a low-cost high-speed internet service for low-income
customers featuring 10 Mbps download speeds for $9.95 per month. The service, called
Connect2Compete, is offered in partnership with EveryoneOn and is available to families with students
participating in the National School Lunch Program. Additional information is available at
www.mediacomc2c.com.
Mediacom appreciates the opportunity to continue to serve your community's telecommunications needs.
If you have any questions, please contact me by calling 507-837-4878 or via email at
tsu nde() m ed iacom cc.com.
Sincerely,
Theresa Sunde
Senior Manager, Government Relations
Metro 1602
2