Cable TV rates to rise up to 4% in 2016 | Cable | News | Rapid TV News
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Rising programming costs are sparking cable rate increases, according to data released by the Evercore ISI Group.

Three of the four top cable operators (Comcast, Time Warner Cable and Cablevision) have announced 2016 rate increases. Charter Communications is the only hold out so far.

Media analysts David Joyce and Vijay Jayant expect cable charges to on average rise 3% to 4% in 2016, while programming costs have risen between 8% and 10% annually over the past four years.

Cablevision is expected to complete its $17.7 billion merger with Altice in the first half of the year. It said that it will not increase pricing for its base products, but will raise set-top box rental charges and DVR fees by $1 per month each for residential and commercial customers. All commercial customers will now be paying $9.99 per month for modem rental fees. Cablevision has said that the average customer bill will increase by 2.9%.

Upping subscriber pricing due to programming costs is nothing new. Time Warner Cable, for instance, once cited a 40% increase in retransmission consent fees as the reason for a new line item called the ‘broadcast TV fee’ for new or non-promotional video customers, amounting to $2.25 extra per month. That represents, says Evercore, a 6% increase and an effective pass-along cost for consumers arising from escalating programming costs.